Please refer to the following unadjusted trial balance in answering the below question. When VLN completes the ninth step in the accounting cycle, all of the following accounts will be involved except:
A)Advertising expense
B)Deferred revenue
C)Retained earnings
D)Sales

Question

Please refer to the following unadjusted trial balance in answering the below question.  When VLN completes the ninth step in the accounting cycle, all of the following accounts will be involved except:
A)Advertising expense 
B)Deferred revenue 
C)Retained earnings 
D)Sales

Quizplus · Accepted Answer

The question is asking which account(s) will not be involved in the ninth step of the accounting cycle. The ninth step is adjusting entries, which involves adjusting revenue and expense accounts to their proper amounts for the period. Deferred revenue is a liability account and does not involve revenue or expenses, so it would not be adjusted in the ninth step. Therefore, the correct answer is B) Deferred revenue. Accounts A, C, and D would all be involved in adjusting entries.

Please Refer to the Following Unadjusted Trial Balance in Answering