BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cash
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interest receivable
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property tax expense
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salaries payable
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Detailed explanation-1: -When adjusting journal entries, you generally will never need to create an adjusting journal entry for the cash account. Accountants debit cash throughout the month to record inflows of cash and credit the cash account to reflect money going out of the business.
Detailed explanation-2: -Answer and Explanation: c) Cash would not normally be affected by any adjustment. Most adjusting entries are for accrued revenues and expenses, so the cash account is unlikely to be affected.
Detailed explanation-3: -The adjusting journal entry will credit accounts receivable and debit the cash account once that money is received. The revenue was earned and recognized earlier, so an adjusting journal entry is needed to properly recognize the cash that has now been received.
Detailed explanation-4: -Fixed Assets Fixed asset accounts are never affected during the adjusting process.