Which of the Following Cases Would Require an Adjusting Entry

question 20

Multiple Choice

Which of the following cases would require an adjusting entry to accrue revenue?

• A)a client has paid for services in advance
• B)customers have been billed for services but not yet paid
• C)capital stock has been issued for cash but not yet paid for
• D)interest on a note receivable will not be received until the note is paid off next year

---

Definitions:

Salary Expense

Salary expense refers to the total amount paid by an employer to its employees for work performed during a specific period, which is reported on the income statement.

Cash Paid

Amounts of cash disbursed by a business for various purposes, including operating expenses, asset purchases, and debt repayments.

Free Cash Flow

A financial metric indicating the amount of cash generated by a company after accounting for capital expenditures.

Cash Provided

Funds that are generated and available for use, typically referring to cash from operating activities.