From the following which is not an adjusting entry ?
- Debit unearned revenue ,credit revenue
- Debit Insurance expense, credit prepaid insurance
- Debit cash, credit unearned revenue
- None
Explanation
The transactions which are recorded using adjusting entries are not spontaneous but are spread over a period of time.
An adjusting entry always involves either income or expense account.
Related MCQs
MCQs will be added soon
Leave a Reply
Your email address will not be published. Required fields are marked *