Which of the following events would not require an end-of-year adjusting entry?
A)Purchasing supplies for cash
B)Providing services on account
C)Purchasing a 12-month insurance policy on July 1
D)All of the above would require an end-of-year adjustment

Question

Quizplus · Accepted Answer

Providing services on account does not require an end-of-year adjusting entry. Accounts receivable is increased when services are provided on account and is decreased when payment is received from customers. Supplies and prepaid insurance both require end-of-year adjusting entries to recognize expense.

Which of the Following Events Would Not Require an End-Of-Year