An example of an adjusting entry would not include:

Question

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Adjusting entries are made at the end of the accounting period to update accounts and ensure that financial statements are accurate. Paying salaries to company employees is not an adjusting entry, as it is a transaction that has already occurred and would be recorded as a regular entry when the payment is made. Choices A, B, and C all relate to adjustments that may need to be made at the end of the period.

An Example of an Adjusting Entry Would Not Include