Which One of the Following Is Not a Justification for Adjusting

question 108

Multiple Choice

Which one of the following is not a justification for adjusting entries?

• A) Adjusting entries are necessary to ensure that revenue recognition principles are followed.
• B) Adjusting entries are necessary to ensure that the expense recognition principle is followed.
• C) Adjusting entries are necessary to enable financial statements to be in conformity with IFRS.
• D) Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

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Definitions:

Capital Mobility

The ability of capital to move freely across borders, allowing for investment and financial transactions to take place internationally with minimal restrictions.

Declaration

A formal or explicit statement, announcement, or pronouncement, often related to policies, intentions, or rights.

Fundamental Principles

Core beliefs or values that form the basis for a system, theory, or organization.

Core Labor Standards

Fundamental principles and rights at work established by the International Labour Organization, including freedom from forced labor, child labor, discrimination, and the right to collective bargaining.