单选题

In accrual accounting, if an adjusting entry results in the reduction of an asset and the recording of an expense, the originating entry recorded was most likely a(n):

A、 accrued expense.
B、 deferred revenue.
C、 prepaid expense.

【正确答案】 C

【答案解析】

The adjusting entry to record the expiry of a prepaid expense is the reduction of an asset (the prepaid) and the recognition of the expense.