Which of the Following Would Not Be Considered an Adjusting

question 104

Multiple Choice

Which of the following would not be considered an adjusting entry? $$\begin{array} { | l | c | r | r | } \hline \text { A) } & \text { Supplies expense } & 400 & \\\hline & \text { Supplies } & & 400 \\\hline & & & \\\hline \text { B) } & \text { Depreciation expense } & 400 & \\\hline & \text { Accumulated depreciation } & & 400 \\\hline & & & \\\hline \text { C) } & \text { Wage expense } & 400 & \\\hline & \text { Cash } & & 400 \\\hline & & & \\\hline \text { D) } & \text { Insurance expense } & 400 & \\\hline & \text { Prepaid insurance } & & 400 \\\hline\end{array}$$

• A) A Above.
• B) B Above.
• C) C Above.
• D) D Above.

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Definitions:

Economic Conditions

The state of a country's economy, influenced by factors such as GDP, unemployment rates, and inflation.

Five Cs of Credit

A set of criteria used by lenders to gauge a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Capacity

The highest level of production a company can maintain to produce a good or deliver a service.

Collateral

An asset pledged as security for repayment of a loan, to be forfeited in case of default.