- at the end of the year, the amount of prepaid insurance that is left is probably less than the account balance so the account needs to be reduced.B - depreciation is recorded as an adjustment so this is always part of the adjustment processC - the unearned revenue is the amount of preaid revenue. at the end of the year, it needs to be adjusted to account of the amount of the revenue that has been earnedD - interest payable is the amount of interest that is owed and is accrued at the end of the year by an adjusting entry
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