Which of the following pairs of accounts could not appear in the same adjusting entry?
A) Service Revenue and Unearned Revenue
B) Interest Income and Interest Expense
C) Rent Expense and Prepaid Rent
D) Salaries Payable and Salaries Expense

Question

Quizplus · Accepted Answer

Interest Income and Interest Expense are opposites and would not be adjusted together. Interest Income is a revenue account and is increased with a credit entry, while Interest Expense is an expense account and is increased with a debit entry. Adjusting entries are made to ensure that revenues and expenses are recognized in the correct accounting period, and Interest Income and Interest Expense are recognized in different periods. Therefore, they cannot appear in the same adjusting entry. The other choices are plausible pairs that could appear in the same adjusting entry.

Which of the Following Pairs of Accounts Could Not Appear