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A. The entry to record the earned portion of rent received in advance. _____ 6. Of the following adjusting entries, which one would cause an increase in assets at the end of the period? A. The entry to record the earned portion of rent received in advance. B. The entry to accrue unrecorded interest expense. C. The entry to accrue unrecorded interest revenue. D. The entry to record expiration of prepaid insurance. _____ 7. Why is it necessary to make adjusting entries? A. The accountant has made errors in recording external transactions. B. Certain facts about the affairs of the business are not included in the ledger as built up from external transactions. C. The accountant wants to show the largest possible net income for the period. D. The accountant wants to show the net cash flow for the year.
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