1- which of the following is an example of an accrual error?

a- failure to adjust prepaid insurance to its proper balance at year-end

b- failure to adjust inventory to its proper balance at year-end

c- failure to record depreciation at year end

d- none of the above

2- On April 1 20x0 your company finances partial payment of the sale machinery to a customer for $20,000 , 3year , 8% note receivable .interest is payable annually in April 1.on December 31 200 , and adjusting entry debits interest recievable and credit interest revenue for $1600. the entry necessary to correct the error before the books are closed would include..

a- a $400 debit to Interest Revenue

b- a $400 credit to Interest Expense

c- a $400 credit to unearned interest receivable

d- a $400 credit to sales