Which of the following accounts would not need to be adjusted at year end? Question 1 Answer Income received in advance Office supplies Prepaid advertising Cash
Question
Which of the following accounts would not need to be adjusted at year end? Question 1 Answer
Income received in advance
Office supplies
Prepaid advertising
Cash
Solution
The account that would not need to be adjusted at the end of the year is "Cash".
Here's why:
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Income received in advance: This is a liability account that needs to be adjusted at the end of the year. If you receive income in advance, you owe a service or product to someone else. As you deliver the service or product, you need to reduce the liability and recognize the income.
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Office supplies: This is an asset account that needs to be adjusted at the end of the year. As you use the supplies, you need to reduce the asset and recognize an expense.
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Prepaid advertising: This is also an asset account that needs to be adjusted. As the advertising is delivered, you need to reduce the asset and recognize an expense.
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Cash: This is an asset account, but it does not need to be adjusted. The balance in the cash account should reflect the amount of cash the company has at the end of the year. There are no accruals or deferrals to be made for cash.
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