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:

External Adaptation

The process by which an organization or individual modifies itself or its strategies to cope with changes in its external environment.

Niche

describes a specialized segment of the market for a particular kind of product or service, where specific demand exists.

Organizational Culture

The set of shared values, beliefs, behaviors, and norms that influence how work gets done within an organization.

Shared Assumptions

Fundamental beliefs and understandings that are implicitly agreed upon by members of an organization or group, guiding their behavior and decision-making.