Which of the following items is NOT classified as an adjusting entry?
A) prepaid expenses
B) accrued expenses
C) unearned revenues
D) owner's capital

Question

Quizplus · Accepted Answer

Owner's capital is not an item that requires adjusting entries. Adjusting entries are made for items that have been incurred but not yet recorded or for items that have been recorded but not yet earned. Owner's capital is a permanent account that is not affected by adjusting entries.

Which of the Following Items Is NOT Classified as an Adjusting