Which account would normally not require an adjusting entry?
A) Wages Expense
B) Accounts Receivable
C) Accumulated Depreciation
D) Cash

Question

Quizplus · Accepted Answer

Cash is a real account, which means that it is a permanent account and does not require an adjusting entry. Adjusting entries are made for nominal accounts (revenue, expenses, and dividends) and for some balance sheet accounts such as accrued expenses and prepaid revenues. Accounts Receivable may require adjusting entries if there are uncollectible accounts or if sales are made but not yet recorded. Accumulated Depreciation requires adjusting entries to correctly allocate the cost of long-term assets over their useful lives. Wages Expense requires adjusting entries if wages have been earned but not yet paid or if wages have been paid but relate to a future period.

Which Account Would Normally Not Require an Adjusting Entry