An adjusting entry is made at the end of an accounting period to bring the accounts up to date on an accrual accounting basis. It typically involves one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. An asset and a credit to a liability: This is possible if an asset is decreasing and a liability is decreasing. However, this is not a typical adjusting entry.

2. A revenue and a credit to an asset: This is not a typical adjusting entry because it involves two credit accounts. In a typical adjusting entry, one account is debited and one account is credited.

3. A liability and a credit to a revenue: This is a typical adjusting entry. For example, if a company has earned revenue that was previously recorded as unearned (a liability), the adjusting entry would debit the liability (decreasing it) and credit revenue (increasing it).

4. An expense and a credit to a revenue: This is not a typical adjusting entry because it involves one debit account (expense) and one credit account (revenue). In a typical adjusting entry, one account is debited and one account is credited.

Therefore, the correct answer is: An adjusting entry can include a debit to a liability and a credit to a revenue.

Question

An adjusting entry is made at the end of an accounting period to bring the accounts up to date on an accrual accounting basis. It typically involves one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. An asset and a credit to a liability: This is possible if an asset is decreasing and a liability is decreasing. However, this is not a typical adjusting entry.

2. A revenue and a credit to an asset: This is not a typical adjusting entry because it involves two credit accounts. In a typical adjusting entry, one account is debited and one account is credited.

3. A liability and a credit to a revenue: This is a typical adjusting entry. For example, if a company has earned revenue that was previously recorded as unearned (a liability), the adjusting entry would debit the liability (decreasing it) and credit revenue (increasing it).

4. An expense and a credit to a revenue: This is not a typical adjusting entry because it involves one debit account (expense) and one credit account (revenue). In a typical adjusting entry, one account is debited and one account is credited.

Therefore, the correct answer is: An adjusting entry can include a debit to a liability and a credit to a revenue.

Knowee AI · Accepted Answer

An adjusting entry is made at the end of an accounting period to bring the accounts up to date on an accrual accounting basis. It typically involves one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. An asset and a credit to a liability: This is possible if an asset is decreasing and a liability is decreasing. However, this is not a typical adjusting entry.

2. A revenue and a credit to an asset: This is not a typical adjusting entry because it involves two credit accounts. In a typical adjusting entry, one account is debited and one account is credited.

3. A liability and a credit to a revenue: This is a typical adjusting entry. For example, if a company has earned revenue that was previously recorded as unearned (a liability), the adjusting entry would debit the liability (decreasing it) and credit revenue (increasing it).

4. An expense and a credit to a revenue: This is not a typical adjusting entry because it involves one debit account (expense) and one credit account (revenue). In a typical adjusting entry, one account is debited and one account is credited.

Therefore, the correct answer is: An adjusting entry can include a debit to a liability and a credit to a revenue.

An adjusting entry can include a debit to: Group of answer choices an asset and a credit to a liability. a revenue and a credit to an asset. a liability and a credit to a revenue. an expense and a credit to a revenue.

Question

Solution

Similar Questions

Upgrade your grade with Knowee