Final answer:
Each transaction corresponds to a different type of adjustment: Transaction A is 'accrued revenue', B resembles 'deferred expense' through depreciation, C is 'deferred revenue', D is 'accrued expense', E is also 'deferred expense', and F is a simple asset exchange transaction not adjusted at period end.
Step-by-step explanation:
The student's question involves identifying the type of adjustment indicated by a series of transactions. The options for adjustment are accrued revenue, accrued expense, deferred revenue, or deferred expense.
- Accrued revenue is income that has been earned but not yet received. This applies to transaction A (fees earned and billed but not collected).
- Accrued expense is an expense that has been incurred but not yet paid. This would relate to transactions D (salaries owed but not yet paid).
- Deferred revenue refers to money received by a company for services or goods to be provided in the future. Transaction C (fees collected in advance of services) falls under this category.
- Deferred expense is a cost that has been incurred for goods or services that will be used up in the future. This pertains to transactions E (property rentals costs, prepaid for future months) and B (recorded depreciation expense, as this reflects the usage of an asset over time).
- Transaction F (inventory purchased for cash) is not typically an item adjusted for at the end of a period, as it is regarded as an asset exchange transaction and not a part of the regular expense or revenue adjustments.