Answer:
Explanation:
Adjusting entries are necessary to ensure that financial statements accurately reflect the financial position and performance of a business. The items that typically require adjusting entries include:
1. Accrued revenue or income: This refers to revenue that has been earned but not yet received or recorded. Adjusting entries are needed to recognize this revenue and ensure it is properly reflected in the financial statements.
2. Accrued expenses or liabilities: These are expenses that have been incurred but not yet paid or recorded. Adjusting entries are required to recognize these expenses and ensure they are properly accounted for in the financial statements.
3. Prepaid expenses: These are expenses that have been paid in advance but have not yet been used or consumed. Adjusting entries are necessary to allocate the prepaid amount to the appropriate accounting period and reflect the portion that has been used or expired.
4. Unearned revenue: This refers to revenue that has been received in advance but has not yet been earned. Adjusting entries are needed to recognize the portion of the revenue that has been earned and to defer the unearned portion to future accounting periods.
5. Depreciation or amortization: These are adjustments made to allocate the cost of long-term assets (such as buildings, equipment, or intangible assets) over their useful lives. Adjusting entries are required to recognize the depreciation or amortization expense and reduce the carrying value of the assets.
Based on the question, the answer would be that all of the listed items (accrued revenue, accrued expenses, prepaid expenses, unearned revenue, and depreciation or amortization) require adjusting entries. Therefore, there are no exceptions in this case.
