Which of the following is not an example of an adjusting entry?
A)recognition of depreciation on equipment purchased during the year
B)recording the expiration of a portion of the cost of prepaid insurance that was purchased during the previous year
C)recognition of income tax expense on the net income earned during the period
D)recording of collections received from customers during the period
E)recognition of warranty expense on cars sold during the period

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to update accounts that are not properly recorded, while recording collections received from customers during the period is not an adjusting entry, but rather a regular transaction. A, B, C, and E are examples of adjusting entries as they recognize expenses or revenues that were not previously recorded.

Which of the Following Is Not an Example of an Adjusting