Adjusting Entries and Ethics By definition, adjusting entries are not triggered by an explicit event. Therefore, accountants must ini- tiate adjusting entries. For each of the following adjusting entries, discuss a potential unethical behav- ior that an accountant or manager might undertake:

a. Recognition of expenses from the prepaid supplies account.

b. Recognition of revenue from the unearned revenue account.

c. Accrual of interest payable.

d. Accrual of fees receivable. Collaborative Learning Exercise