Which of the Following Would Normally Be Recorded with an Adjusting

question 157

Multiple Choice

Which of the following would normally be recorded with an adjusting entry?

• A) Sales on credit
• B) Payment for supplies bought on account
• C) Depreciation expense
• D) Salaries expense

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Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the near term.

Operating Capacity

The maximum output a company can produce using its current resources without compromising quality or efficiency.

Sales Projection

An estimate of the sales revenue that a company expects to achieve in a future period.

Retained Earnings

Profits that a company has kept or retained rather than distributed to shareholders in the form of dividends.