Which of the Following Does Not Require an Adjusting Entry

question 41

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

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Definitions:

MC

Marginal Cost, the increase in total cost that arises from producing one additional unit of a good or service.

AVC

Average Variable Cost, the variable cost per unit of output.

Law Of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if all other variables remain at a constant.

Marginal Output

The additional quantity of a product that is produced from using one more unit of an input, keeping other inputs constant.