Which of the Following Events Would Not Require an End-Of-Year

question 132

Multiple Choice

Which of the following events would not require an end-of-year adjusting entry?

• A)Purchasing supplies for cash
• B)Providing services on account
• C)Purchasing a 12-month insurance policy on July 1
• D)All of the above would require an end-of-year adjustment

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Definitions:

Income Statement

An income statement is a financial statement that reports a company's financial performance over a specific accounting period, detailing revenues and expenses to show net profit or loss.

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any costs associated with the sale or disposal of the item.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Gross Accounts Receivable

The total amount owed by customers to a business for goods or services provided without deducting any allowance for doubtful accounts.