Which of the following events would not require a year-end adjusting entry?
A)Purchasing supplies for cash during the year.
B)Paying for one year's rent during the year.
C)Providing services on account during the year.
D)Each of these events would require a year-end adjusting entry.

Question

Quizplus · Accepted Answer

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

Which of the Following Events Would Not Require a Year-End