Practice question · Match the pairs
Match each adjustment type to its journal entry.
- Accrued expense
- Accrued revenue
- Prepaid expense
- Unearned revenue
- Dr Accrued Asset, Cr Revenue
- Dr Expense, Cr Prepaid Asset
- Dr Unearned Revenue, Cr Revenue
- Dr Expense, Cr Accrued Liability
Hints
- Each adjustment pairs one balance-sheet account with one income account.
- Ask which side grows in each pattern.
Show the answer
- Accrued expense → Dr Expense, Cr Accrued Liability
- Accrued revenue → Dr Accrued Asset, Cr Revenue
- Prepaid expense → Dr Expense, Cr Prepaid Asset
- Unearned revenue → Dr Unearned Revenue, Cr Revenue
Why
Four patterns, each one a debit-credit pair that forces the books to match economic reality rather than cash timing.
Practise Adjusting Entries
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
More questions on Adjusting Entries
- Adjusting entries are made at period-end and never involve cash. Why is that the defining feature?
- A company receives 12,000 on October 1 for a one-year service contract. By December 31, how much revenue…
- Which adjustments create or increase a liability?
- The matching principle says expenses should be recorded in the same period as the revenues they helped…
- Complete the adjustment logic.
- Every adjusting entry touches one balance-sheet account and one income account, never two of either. Why does…
- Accrual or deferral? Sort each adjusting entry.