An adjusting entry is usually not required for a revenue item when it is
A) budgeted,paid for,and partially earned in one period but not fully earned until a later period.
B) paid for by the customer,recorded,and earned in one period.
C) paid for by the customer and recorded in one period but not fully earned until a later period.
D) earned in one period but not paid for by the customer or recorded until a later period.

Question

Quizplus · Accepted Answer

When a revenue item is paid for by the customer, recorded, and earned in one period, no adjusting entry is needed because the revenue has already been earned and the transaction has been properly recorded.

An Adjusting Entry Is Usually Not Required for a Revenue