Which of the Following Is Not a Reason for Why

question 136

Multiple Choice

Which of the following is not a reason for why adjusting journal entries are necessary?

• A) to ensure all revenues are recognized in the period earned
• B) to ensure all expenses are recognized in the period incurred
• C) because U.S. GAAP requires that financial information be reported using the accrual basis of accounting
• D) because U.S. GAAP requires that financial information be reported on the cash basis of accounting and adjusting entries adjust accounts from the accrual to the cash basis

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Definitions:

Substance Use Disorder

A medical condition characterized by an uncontrolled use of substances despite harmful consequences.

Cocaine

A powerful and addictive stimulant drug derived from the leaves of the coca plant, which increases levels of dopamine in the brain, leading to euphoria, increased energy, and potentially, addiction.

User Expectations

The beliefs or anticipations that users have regarding the performance or behavior of a product, system, or service.

Sexual Fantasies

Imaginative thoughts or daydreams about sexual activities or desires that can vary widely among individuals.