Which of the Following Situations Does Not Require an Adjusting

question 143

Multiple Choice

Which of the following situations does not require an adjusting entry at the end of May?

• A)At the end of May,Bolton Industries pays the custodian for May office cleaning services.
• B)On May 1,Bolton Industries paid rent for six months on its office building.
• C)On May 1,Bolton Industries began delivery service to a client who will pay at the end of a three-month period.
• D)On May 1,Bolton Industries purchased delivery equipment with an estimated useful life of six years.

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Balance Per Books

The ending balance of an account as recorded in the financial records of a company or individual.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement.

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual or adjusted balance that may be shown in a bank statement or other external source.