All of the Following Are Reasons to Adjust the Account

question 197

Multiple Choice

All of the following are reasons to adjust the account balances at the end of the period EXCEPT

• A) to accurately report the assets on the balance sheet.
• B) to report all revenues earned during the period.
• C) to report all expenses incurred during the period.
• D) to correct any errors made during the period.

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Definitions:

Proprietorship

A business entity owned and run by one individual where there is no legal distinction between the owner and the business.

Taxed

Subjected to a financial charge or levy by a governmental authority on income, property, or sales.

Liabilities

Obligations that a company owes to outside parties, typically consisting of loans and accounts payable.

Transfer Of Ownership

Transfer Of Ownership involves the legal process by which the rights of owning an asset or property are moved from one party to another.