An adjusting entry is usually not required for a revenue item when it is
A)paid for by the customer and recorded in one period but not fully earned until a later period.
B)earned, recorded and paid for by the customer in one period.
C)budgeted, paid for, and partially earned in one period but not fully earned until a later period.
D)earned in one period but not paid for by the customer or recorded until a later period.

Question

Quizplus · Accepted Answer

If the revenue is earned, recorded, and paid for by the customer in the same period, no adjusting entry is necessary. Adjusting entries are only required when revenue is earned in one period but not yet recorded or paid for, or when revenue is recorded or paid for in one period but not fully earned until a later period. If the revenue is already fully earned and paid for, there is no need for adjustment.

An Adjusting Entry Is Usually Not Required for a Revenue