Which of the following situations does NOT involve an adjusting entry?
A)Recording the expiration of prepaid insurance.
B)Recording depreciation on equipment.
C)Recording wages owed to employees.
D)Recording revenue earned when cash was received in advance.
E)Recognizing sales when they occur.

Question

Quizplus · Accepted Answer

Recognizing sales when they occur does not involve an adjusting entry because it is already recorded as revenue in the initial entry or when the sale happened. Adjusting entries are made to record transactions that occurred during the period but were not yet recorded, such as prepaid expenses or accrued liabilities.

Which of the Following Situations Does NOT Involve an Adjusting