Final answer:
Recognizing accrued interest is an example of an adjusting entry, which is made to ensure financial statements are accurate by updating account balances according to the revenue recognition and matching principles.
Step-by-step explanation:
Among the options provided, c. Recognizing accrued interest is an example of an adjusting entry. Adjusting entries are a key part of the accounting process and are made in the ledger to update account balances before financial statements are prepared. These entries are necessary to ensure that the revenue recognition and matching principles are followed. For instance, accrued interest represents interest that has been incurred but not yet paid or recorded through a regular transaction, reflecting the accumulation of interest over time. Adjusting entries for accrued interest typically involve crediting interest payable and debiting interest expense.