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:

Supervision

The act of overseeing or managing the work or performance of others to ensure standards are met and goals are achieved.

State Bar Associations

Professional organizations that license, regulate, and discipline lawyers within each U.S. state.

The NALA

The National Association of Legal Assistants is a professional body that offers ongoing education and professional certification for paralegals.

Direct Regulation

A method by which government controls or influences industry or business activity through laws and regulations.