An adjusting entry will not take the format of which one of the following entries?
A) A debit to an expense account and a credit to an asset account
B) A debit to an expense account and a credit to a revenue account
C) A debit to an asset account and a credit to a revenue account
D) A debit to a liability account and a credit to a revenue account

Question

Quizplus · Accepted Answer

An adjusting entry is made at the end of an accounting period to update the accounts and ensure that financial statements are accurate. The purpose of an adjusting entry is to record revenue or expenses that have been earned or incurred but have not yet been recorded in the accounts. Option B is incorrect because a credit to a revenue account would increase the revenue on the income statement, but a debit to an expense account would decrease it. All other options contain accounts that could be involved in an adjusting entry.

An Adjusting Entry Will Not Take the Format of Which