The Main Purpose of the Adjusting Process Is

question 128

Multiple Choice

The main purpose of the adjusting process is

• A)to remove the effects of all transactions recorded during the accounting period.
• B)to make the account balances reflect the company's true position according to the guidelines of accrual accounting.
• C)to get the accounting records ready for a new accounting period.
• D)to identify the amount of cash available for dividends to be paid.

---

Definitions:

Stock Investments

Financial assets representing shares of ownership in a corporation, which may provide dividends and capital gains to the investor.

Dividend Revenue

Income earned by shareholders when a company distributes a part of its earnings to its stockholders.

Common Stock

Equity ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Operating Revenue

Operating revenue refers to the income generated from a company's primary business activities, such as sales of goods or services.