Adjusting Entries Made at the End of an Accounting Period

question 30

Multiple Choice

Adjusting entries made at the end of an accounting period accomplish all of the following except:

• A) Updating liability and asset accounts to their proper balances.
• B) Assigning revenues to the periods in which they are earned.
• C) Assigning expenses to the periods in which they are incurred.
• D) Assuring that financial statements reflect the revenues earned and the expenses incurred.
• E) Assuring that external transaction amounts remain unchanged.

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Definitions:

Supply Reduction

A decrease in the amount of a good or service that producers are willing to provide, often due to factors like high production costs or regulatory measures.

Union

A worker association that bargains with employers over wages and working conditions.

Employed

The state of having paid work; a person who performs work for wages or salary in a part-time or full-time position.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of labor unions in the United States.