An example of an adjusting entry would not include:
A)Recording the use of office supplies.
B)Recording the expiration of prepaid insurance.
C)Recording unpaid salaries.
D)Paying salaries to company employees.

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to update account balances and allocate revenues and expenses correctly. Paying salaries to company employees is not an adjusting entry but a regular entry that is made when the payment occurs. Options A, B, and C involve transactions that require adjusting entries, as the usage of office supplies, the expiration of prepaid insurance, and the accrual of unpaid salaries have not been recorded in the books yet.

An Example of an Adjusting Entry Would Not Include