The adjusting entry required when goods and services are provided to customer for amounts previously recorded as deferred revenues includes:

A) A debit to a liability.

B) A debit to an asset.

C) A credit to a liability.

D) A credit to an asset.

Answer: A

An example of an adjusting entry would not include:

A) Recording interest earned on bank account balances.

B) Recording the expiration of prepaid rent.

C) Recording unpaid salaries.

D) Recording the purchase of office supplies.

Answer: D

Providing goods or services to customers on account is an example of a(n):

A) Accrued expense.

B) Accrued revenue.

C) Prepaid expense.

D) Deferred revenue.

Answer: B