Which of the Following Does Not Require an Adjusting Entry

question 79

Multiple Choice

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 owner.
• D) Accrued wages.
• E) Expired portion of prepaid insurance.

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Definitions:

Service Firms

Businesses that provide intangible products or services to consumers or other businesses.

Manufacturing Firms

Companies that use labor, equipment, and raw materials to produce finished goods on a large scale.

Work in Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.

Materials Ledger Cards

Records used to track the quantities and costs of materials on hand in inventory through receipts, issuances, and balances.