Asked by Taylor Eakin on Jun 21, 2024
Verified
Which of the following does not require an adjusting entry at year-end?
A) Accrued interest on notes payable.
B) Supplies used during the period.
C) Cash invested by stockholders.
D) Accrued wages.
E) Expired portion of prepaid insurance.
Cash Invested
Money that is put into a business or project with the expectation of generating income or profit.
Accrued Interest
Interest that has accrued but remains unpaid.
Prepaid Insurance
Payments made for insurance services before the coverage period, recorded as an asset initially and expensed over time.
- Acquire knowledge on the categorization and management of different adjusting entries within the accounting cycle.
Verified Answer
HP
Hetal PanchalJun 26, 2024
Final Answer :
C
Explanation :
Cash invested by stockholders does not require an adjusting entry at year-end as it is a financing activity and not an operating activity. The other options (A, B, D, E) all involve adjusting entries to properly reflect the expenses or revenues in the correct period.
Learning Objectives
- Acquire knowledge on the categorization and management of different adjusting entries within the accounting cycle.