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(In QuickBooks) Adjusting entries are prepared for    ______. a. Prepaid Expenses b. Depreciation c. Drawing d. Both...


(In QuickBooks) Adjusting entries are prepared for    ______.
a. Prepaid Expenses
b. Depreciation
c. Drawing
d. Both A and B

Business   Accounting   
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Answer #1

Answer:

Option d i..e option A and B.

Adjusting entries are prepared to record adjustment at the end of the year in accordance with Accrual principle of accounting. Adjusting entries are entries made at the end of the year to record expenses/ revenue pertaining to year which has been accrued and yet to receive.

Thefeore, Adjusting entries are prepared for Prepaid Expenses to record expenses accrued for which expenses have been paid in advance and Depreciation to record Depreciation expenses accrued for the year.

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