Reference no: EM132789592
Problem 1: An adjusting entry cannot include a debit to a(n)
a. asset and a credit to a liability.
b. asset and a credit to a revenue.
C. expense and a credit to an asset.
d. liability and a credit to a revenue.
Problem 2: An adjusting entry made to record accrued interest on a note payable due next year consists of a debit to
a. Interest Expense and a credit to Cash.
b. Interest Expense and a credit to Interest Payable.
C.Interest Expense and a credit to Notes Payable.
d. Interest Receivable and a credit to Interest Earned.
Problem 3: Failure to record depreciation at year-end will result in ai
a. overstatement of total assets.
b. overstatement of total liabilities.
C. understatement of profit.
d. understatement of total liabilities.