An example of an entry that is not an adjusting entry is
A)reducing Prepaid Rent to record rent expense for the current month.
B)reducing Unearned Revenue to record revenue for services provided during the month.
C)accruing wage expense for labor costs which have been incurred but not yet paid.
D)purchase of land for cash and a note payable.
E)accruing revenue for services that have been provided but not yet billed.

Question

Quizplus · Accepted Answer

The purchase of land for cash and a note payable is not an adjusting entry as it does not involve the recognition of previously unrecorded income or expenses or the correction of errors in previously recorded transactions. It is a straightforward cash and credit transaction that is recorded as a regular entry.

An Example of an Entry That Is Not an Adjusting