Which of the Following Events Would Not Require an End-Of-Year

question 135

Multiple Choice

Which of the following events would not require an end-of-year adjusting entry?

• A) Purchasing supplies for cash
• B) Paying for one year's rent on July 1
• C) Providing services for cash
• D) Each of these answer choices would require an end-of-year adjusting entry.

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Definitions:

Cash Receipts

The total amount of cash received by a business during a specified period.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, used to evaluate its financial health.

Operating Activities

Activities that are part of a company's primary business operations, such as selling goods and services.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.