One of the Major Advantages of Making Adjustments in Order

question 5

Multiple Choice

One of the major advantages of making adjustments in order to improve the quality of financial statements is that they:

• A)ensure that revenues and expenses are recognized during the period they are earned and incurred.
• B)ensure that all estimates of future activities are eliminated from consideration.
• C)ensure that revenues and expenses are recognized conservatively during the period hey are paid.
• D)provide an opportunity to manipulate the numbers to the best effect.

---

Definitions:

Creativity

The ability to produce original and valuable ideas or solutions.

Writing Skills

The ability to express ideas and thoughts clearly and effectively in written form.

Intuition

Intuition involves understanding or knowing something immediately without the need for conscious reasoning, often referred to as a "gut feeling".

Algorithms

Step-by-step procedures or sets of rules followed in calculations or problem-solving operations, particularly by computers.