Which of the Following Are Not an Example of Adjusting

question 40

Multiple Choice

Which of the following are not an example of adjusting entries?

• A)recognition of depreciation on equipment purchased during the year
• B)recording the expiration of a portion of the cost of prepaid insurance that was purchased during the previous year
• C)recognition of income tax expense on the net income before income taxes earned during the period
• D)recording of collections received from customers during the period
• E)all of the above

---

Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period before any purchases or sales have been made.

Net Income

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

Cost of Goods Sold

The immediate expenses linked to the creation of goods sold by a business, which encompass costs for materials and labor.

Specific Identification

An inventory valuation method that tracks the cost of individual items for the purpose of determining cost of goods sold.