37. When a prepaid expense is initially recorded as an expense, the adjusting entry: (1 Point) A) transfers the used portion to an asset account. B) transfers the unused portion to an asset account. Q) transfers the used portion to an expense account. D) There is no need for an adjusting entry. 38. Which of the following accounts would be used under the accrual basis of accounting, but not under the cash-basis of accounting? (1 Point) A) cash B) unearned revenue equipment OD) salary expense