An Adjusting Entry Could Be Made for All of the Following

question 118

Multiple Choice

An adjusting entry could be made for all of the following except:

• A) Prepaid expenses.
• B) Depreciation expense.
• C) Owner withdrawals.
• D) Unearned revenues.
• E) Accrued revenues.

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Definitions:

Gain

An increase in wealth or resources, typically realized through the sale of an asset for more than its purchase price.

Accrued Selling Expenses

Expenses that have been incurred but not yet paid in the selling process, recorded on the balance sheet.

Accrued Income Taxes

Taxes that have been incurred, but not yet paid, usually recognized at the end of an accounting period.

Operating Activity

Activities that are part of the day-to-day operations of a business, such as selling, general, and administrative expenses.