Final answer:
The correct example of a deferral adjusting entry from the choices given is 'Recognizing depreciation expense.' This is because it involves the allocation of the cost of an asset over its useful life, effectively deferring the recognition of the expense.
Step-by-step explanation:
The question asks for an example of a deferral adjusting entry. A deferral adjusting entry refers to the postponement of the recognition of an expense or revenue that has been paid or received in advance. Among the choices provided:
- Recording accrued salaries is an example of an accrual, not a deferral.
- Recognizing depreciation expense can be considered a deferral adjusting entry because it allocates the cost of a long-term asset over its useful life, deferring the expense recognition.
- Preparing unadjusted trial balance is a step in the accounting cycle before adjustments.
- Paying off a short-term loan is a transactional entry, not an adjusting entry.
Therefore, the correct answer is b) Recognizing depreciation expense.