Which of the following pairs of accounts could possibly appear in the same adjusting entry?
A)Interest Income and Interest Payable.
B)Revenue from Services and Cash.
C)Service Revenue and Unearned Revenue.
D)Rent Expense and Depreciation Expense.

Question

Quizplus · Accepted Answer

Service Revenue and Unearned Revenue are both revenue accounts and may appear in the same adjusting entry if the company has received payment for services that have not yet been provided. The unearned revenue account would be reduced, and the service revenue account would be increased to reflect the amount of revenue earned during the period. The other account pairs listed do not have a logical relationship that would cause them to appear in the same adjusting entry.

Which of the Following Pairs of Accounts Could Possibly Appear