Which one of the accounts below would likely be included in an accrual adjusting entry? a. Insurance Expense b. Prepaid Rent c. Interest Expense d. Unearned Rent

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Business

Parks

2 February, 10:52

Which one of the accounts below would likely be included in an accrual adjusting entry? a. Insurance Expense b. Prepaid Rent c. Interest Expense d. Unearned Rent

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Answers (1)

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Toby Becker · Answer 1

c. Interest Expense

Explanation:

The accrual basis of accounting refers to the accounting in which it records when the revenues is earned and when the expenses are incurred. Moreover it also follows the matching principle which states that the expenses of a particular period should always be matched with the revenues earned of that particular period

Hence, the correct option is c.