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

Question

Quizplus · Accepted Answer

Owner withdrawals do not require an adjusting entry since they are recorded directly in the owner’s capital account. Adjusting entries are required for items that have not yet been recorded, such as prepaid expenses, unearned revenues, and accrued revenues, or for items that need to be updated, such as depreciation expense.

An Adjusting Entry Could Be Made for All of the Following