An adjusting entry could be made for each of the following except:
A) Unearned revenues.
B) Accrued expenses.
C) Depreciation.
D) Prepaid expenses.
E) Owner investments.

Question

Quizplus · Accepted Answer

Adjusting entries are made to ensure that the financial statements accurately represent the financial position and profitability of a company. Owner investments do not require adjusting entries because they are not related to the company's operational activities and do not affect the financial statements.

An Adjusting Entry Could Be Made for Each of the Following