An adjusting entry could be made for each of the following except:
A)Prepaid expenses.
B)Depreciation.
C)Owner investments.
D)Unearned revenues.
E)Accrued expenses.

Question

Quizplus · Accepted Answer

Adjusting entries primarily deal with transactions and events that have already occurred but have not been recorded in the accounting system. Owner investments, however, are not an expense or income that needs to be adjusted. They are recorded directly in the owner's capital account. The other options, prepaid expenses, depreciation, unearned revenues, and accrued expenses, all involve adjusting for the timing of expenses, revenues, and assets/liabilities.

An Adjusting Entry Could Be Made for Each of the Following