Question 1
Recording interest earned on an investment is an example of which type of adjusting journal entry?
◦ Accrual entry.
◦ Deferral entry.
◦ Closing entry.
◦ Correcting entry.
Question 2
Identify the adjusting entry that is made at the end of an accounting period to reflect an exchange of cash prior to the performance of a related event is classified as a(n)
◦ Accrual entry.
◦ deferral entry.
◦ Closing entry.
◦ Correcting entry.