Which of the Following Does Not Require an Adjusting Entry

question 230

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 investments by stockholders.
• D)Accrued wages.
• E)Expired portion of prepaid insurance.

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Definitions:

Foreign Currency Transactions

Deals or exchanges that involve the use of currency other than the domestic currency of the entities involved.

Straight-Line Method

An accounting method of depreciation that allocates an asset's cost evenly throughout its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its financial transactions.

Cash Dividend

A distribution of a portion of a company's earnings paid to its shareholders in the form of cash.