Adjustment Types in Accounting

Which of the following is an example of accrued income?

• Receiving payment from a customer before providing services

• Earning interest on investments

• Paying for rent in advance

• Incurring utility expenses

A company pays R2,000 for rent in advance for the next two months. What type of adjustment is required?

• Prepaid expense

• Accrued expense

• Income received in advance

• Accrued income

A business earns R500 in interest on its investments, but the interest has not been received yet. What type of adjustment is required?

• Accrued income

• Income received in advance

• Prepaid expense

• Accrued expense

A company incurs R2,500 in salaries expenses, but the payment has not been made yet. What type of adjustment is required?

• Accrued expense

• Prepaid expense

• Income received in advance

• Accrued income

A company receives R3,000 in advance from a customer for services to be provided over the next three months. What is the adjustment amount for the first month?

• R1,000

• R3,000

• R2,000

• R1,500

A company receives R1,000 in advance from a customer for services to be provided next month. What type of adjustment is required?

• Accrued income

• Income received in advance

• Prepaid expense

• Accrued expense

A business earns R2,000 in revenue, but the customer has not paid yet. What type of adjustment is required?

• Accrued income

• Income received in advance

• Prepaid expense

• Accrued expense

Which of the following is an example of prepaid expense?

• Paying for utility bills

• Receiving payment from a customer before providing services

• Paying for rent in advance

• Incurring expenses for office supplies

A business pays R1,800 for insurance coverage in advance for the next six months. What is the adjustment amount for each month?

• R300

• R1,800

• R900

• R600

A business incurs R1,500 in utility expenses, but the bill has not been paid yet. What type of adjustment is required?

• Accrued expense

• Prepaid expense

• Income received in advance

• Accrued income