Which of the following pairs of accounts could not appear in the same adjusting entry?

A) Fees Earned and Unearned Fees
B) Interest Income and Interest Expense
C) Rent Expense and Prepaid Rent
D) Salaries Payable and Salaries Expense

Question

Logan Morris · Accepted Answer

Final Answer : B, Explanation :  Adjusting entries are made to record internal transactions that are not initiated by an external transaction. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability). Interest Income and Interest Expense represent two different types of transactions: one is income earned from investments or lending, and the other is an expense incurred from borrowing. They would not be adjusted against each other in a single adjusting entry because they represent two distinct aspects of financial performance and would not directly impact each other in the accounting records.

Which of the following pairs of accounts could not appear in the same adjusting entry?

A) Fees Earned and Unearned Fees
B) Interest Income and Interest Expense
C) Rent Expense and Prepaid Rent
D) Salaries Payable and Salaries Expense

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following pairs of accounts could not appear in the same adjusting entry?A) Fees Earned and Unearned FeesB) Interest Income and Interest ExpenseC) Rent Expense and Prepaid RentD) Salaries Payable and Salaries Expense

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following pairs of accounts could not appear in the same adjusting entry?

A) Fees Earned and Unearned Fees
B) Interest Income and Interest Expense
C) Rent Expense and Prepaid Rent
D) Salaries Payable and Salaries Expense