Adjusting entries are not necessary when cash is paid at the same time expenses are incurred.

Name: Adjusting entries are not necessary when cash is paid at the same time expenses are incurred.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

Adjusting entries are needed when an expense is incurred but payment is not made yet or when a payment is made but it relates to a future expense. If payment is made at the same time expenses are incurred, there is no need for adjusting entries.

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