Question

Entries for prepaid expenses, outstanding expenses and depreciation arte called as___________. (a) Adjustments Entries (b) Transfer Entries (c) Closing Entries (d) Rectification Entries

Answer 1

Prepaid expenses, outstanding exps and depreciation are *adjustments* done at the end of accounting year/at the time of preparation of financial statements.

Therefore, the entries passed for such adjustments is known as adjustment entries.

Answer is a) Adjustment Entries