Adjusting Entries

question 213

Multiple Choice

Adjusting entries

• A) ensure that the revenue recognition and expense recognition principles are followed.
• B) are necessary to enable the financial statements to conform to International Financial Reporting Standards (IFRS).
• C) include both accruals and deferrals
• D) all of these answer choices are correct.

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Definitions:

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.

Sigmund Freud

An Austrian neurologist best known for developing the theories and techniques of psychoanalysis, including the concepts of the unconscious mind, Oedipus complex, and defense mechanisms.

Psychodynamic Theories

A group of theories in psychology that emphasize the influence of the unconscious mind and childhood experiences on behavior.