Adjusting entries are made at the end of an accounting period to update account balances before financial statements are prepared. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. Cash is a balance sheet account. However, adjusting entries rarely involve the cash account because they are made to record revenues and expenses that have been earned or incurred but not yet received or paid in cash.

2. Interest receivable is a balance sheet account (asset) that could be involved in an adjusting entry to record accrued interest income.

3. Rates payable is a balance sheet account (liability) that could be involved in an adjusting entry to record accrued expenses.

4. Revenue received in advance is a balance sheet account (liability) that could be involved in an adjusting entry to record unearned revenues.

Therefore, the correct answer is: An adjusting entry would not include the Cash account.

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Adjusting entries are made at the end of an accounting period to update account balances before financial statements are prepared. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. Cash is a balance sheet account. However, adjusting entries rarely involve the cash account because they are made to record revenues and expenses that have been earned or incurred but not yet received or paid in cash.

2. Interest receivable is a balance sheet account (asset) that could be involved in an adjusting entry to record accrued interest income.

3. Rates payable is a balance sheet account (liability) that could be involved in an adjusting entry to record accrued expenses.

4. Revenue received in advance is a balance sheet account (liability) that could be involved in an adjusting entry to record unearned revenues.

Therefore, the correct answer is: An adjusting entry would not include the Cash account.

Knowee AI · Accepted Answer

Adjusting entries are made at the end of an accounting period to update account balances before financial statements are prepared. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability).

1. Cash is a balance sheet account. However, adjusting entries rarely involve the cash account because they are made to record revenues and expenses that have been earned or incurred but not yet received or paid in cash.

2. Interest receivable is a balance sheet account (asset) that could be involved in an adjusting entry to record accrued interest income.

3. Rates payable is a balance sheet account (liability) that could be involved in an adjusting entry to record accrued expenses.

4. Revenue received in advance is a balance sheet account (liability) that could be involved in an adjusting entry to record unearned revenues.

Therefore, the correct answer is: An adjusting entry would not include the Cash account.

An adjusting entry would not include which of the following accounts? Group of answer choices Cash Interest receivable Rates payable Revenue received in advance

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