Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions - Page 200: 8

Answer

An adjusting entry for prepaid expenses - Debit to an expense account and credit to an asset account.

Work Step by Step

For example - adjusting entry for prepaid insurance will be Debit insurance expense account Credit - prepaid insurance account.
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