Asked by Zachariah Andress on Jun 03, 2024

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An adjusting entry could be made for each of the following except:

A) Prepaid expenses.
B) Depreciation.
C) Stockholder investments.
D) Unearned revenues.
E) Accrued expenses.

Stockholder Investments

Funds or assets invested by shareholders into a company, contributing to its equity.

Prepaid Expenses

Prepaid expenses are future expenses that have been paid in advance, recognized as assets on a balance sheet until the services or goods are received or the expense is incurred.

Accrued Expenses

Accrued expenses are liabilities recognized on the books before they have been billed or paid.

  • Detect and discuss the necessity for adjusting entries and their bearing on the accounting equation.
  • Learn the classification and treatment of various types of adjusting entries in the accounting cycle.
verifed

Verified Answer

DE
Devonte EdwardsJun 06, 2024
Final Answer :
C
Explanation :
Adjusting entries are designed to correct errors or update accounts to accurately reflect their status. Stockholder investments are not typically an account that would require an adjusting entry.