Which of the following does NOT require an adjusting entry?
A) Inventory discrepancies
B) Expired Insurance
C) Collection of money on account
D) Depreciation of Equipment

Question

Quizplus · Accepted Answer

Collection of money on account does not require an adjusting entry because it is a cash transaction that should already be recorded in the accounting system. Adjusting entries are made for transactions or events that have occurred but have not yet been recorded in the accounting system or for transactions that have been recorded but need to be updated for accuracy. The other options listed all involve adjustments to the accounting records that need to be made at the end of an accounting period.

Which of the Following Does NOT Require an Adjusting Entry