Adjusting entries are not necessary when cash is received at the same time revenues are earned.

Name: Adjusting entries are not necessary when cash is received at the same time revenues are earned.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Adjusting entries are only required when there is a timing difference between when revenues or expenses are recognized and when cash is received or paid. When cash is received at the same time revenues are earned, there is no need for adjusting entries as the transaction is already properly recorded.

Adjusting Entries Are Not Necessary When Cash Is Received at the Same