Which of the Following Statements Regarding Adjusting Entries Is Not

question 133

Multiple Choice

Which of the following statements regarding adjusting entries is not true?

• A)Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period.
• B)Adjustments help to ensure the related accounts on the balance sheet and income statement are up to date and complete.
• C)Adjusting entries often affect the cash account.
• D)Adjusting entries generally include one balance sheet and one income statement account.

Understand the role and impact of bond rating agencies on the bond market.

Calculate and analyze the yield to maturity (YTM) of bonds.

Grasp the relationship between bond prices, yield to maturity, and market interest rates.

Differentiate between various types of bonds based on their characteristics and risk profiles.

---

Definitions:

Fiscal Year

A one-year period that companies and governments use for accounting and financial reporting, which may or may not align with the calendar year.

Business Activities

Various actions undertaken by a company in the pursuit of its commercial objectives, including operating, investing, and financing activities.

Operating Cycle

The process by which a company spends cash, generates revenues, and receives cash from customers.

Stockholders' Equity

The stake in a corporation's assets left over after all debts are cleared, signifying an ownership interest.