Which of the Following Does Not Require an Adjusting Entry

question 79

Multiple Choice

Which of the following does not require an adjusting entry at year-end?

• A) Accrued interest on notes payable.
• B) Supplies used during the period.
• C) Cash invested by owner.
• D) Accrued wages.
• E) Expired portion of prepaid insurance.

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Definitions:

Rate of Return

The percentage of net gain or loss on an investment over a specified period, showing the efficiency of an investment.

Fair Game

An investment prospect that has a zero risk premium.

Risk Premium

The extra return above the risk-free rate that investors require to compensate them for choosing to invest in a risky asset.

Portfolio Volatility

A measure of the dispersion of returns for a given security or market index, indicating how much the total value of the portfolio's assets fluctuates over time.