Question

Certain adjusting entries result in a decrease in an asset and an increase in an expense. Such an entry would be the entry to record:

the expiration of prepaid insurance.

interest accrued on a note receivable.

interest accrued on a note payable.

the earning of Unearned Rent Fees.

 

A.

the expiration of prepaid insurance.

 

B.

interest accrued on a note receivable.

 

C.

interest accrued on a note payable.

 

D.

the earning of Unearned Rent Fees.