Question

multiple choice question
identify which group of accounts may require adjustments at the end of the accounting period.

• utilities expense; cash; common stock
• cash; notes receivable; land
• unearned revenue; supplies; prepaid rent

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Explanation:

• Unearned revenue: Represents cash received for unprovided goods/services; adjustments recognize earned revenue over time.
• Supplies: A prepaid asset; adjustments record the amount of supplies used during the period as an expense.
• Prepaid rent: A prepaid asset; adjustments recognize the portion of rent that has expired (used) during the period as an expense.

The other groups contain permanent accounts (Cash, Common Stock, Land) or accounts that are typically recorded when incurred (Utilities Expense) which do not require end-of-period adjusting entries for accrual basis purposes.

Answer:

Unearned revenue; Supplies; Prepaid rent