Which Account Would Normally Not Require an Adjusting Entry

question 49

Multiple Choice

Which account would normally not require an adjusting entry?

• A) Wages Expense
• B) Accounts Receivable
• C) Accumulated Depreciation
• D) Smith, Capital

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Warranty of Authority

A representation that a person who purports to act on behalf of another (an agent) has the necessary authority to do so.

Bankruptcy

A legal process for individuals or businesses that are unable to repay their outstanding debts, allowing for the distribution of assets to creditors, potentially leading to the discharge of remaining debts.