Adjusting Entries Made at the End of an Accounting Period

question 30

Multiple Choice

Adjusting entries made at the end of an accounting period accomplish all of the following except:

• A) Updating liability and asset accounts to their proper balances.
• B) Assigning revenues to the periods in which they are earned.
• C) Assigning expenses to the periods in which they are incurred.
• D) Assuring that financial statements reflect the revenues earned and the expenses incurred.
• E) Assuring that external transaction amounts remain unchanged.

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Definitions:

Nondisclosure

A failure to provide pertinent information about a projected contract.

Basic Assumption

A fundamental principle or belief that is accepted as true without proof.

Voidable

Refers to a legal distinction indicating that an agreement or transaction can be nullified or canceled by one of the parties involved.

Rescinded

Describes an action whereby a contract, order, or agreement is revoked, canceled, or repealed.