Adjusting entries NEVER involve:
A) expenses.
B) cash.
C) liabilities.
D) revenues.

Question

Quizplus · Accepted Answer

Adjusting entries are made in the accounting records to record revenues that have been earned but not yet recorded and expenses that have been incurred but not yet recorded. They do not involve cash transactions; instead, they are adjustments made to accounts such as revenues, expenses, assets, and liabilities to ensure they reflect the correct amounts at the end of an accounting period.

Adjusting Entries NEVER Involve