Adjusting Entries Are Required

question 135

Multiple Choice

Adjusting entries are required

• A) because some costs expire with the passage of time and have not yet been journalized.
• B) when the company's profits are below the budget.
• C) when expenses are recorded in the period in which they are incurred.
• D) when revenues are recorded in the period in which they are earned.

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Definitions:

Nerve Fibers

Long, slender projections of nerve cells that transmit electrical impulses throughout the nervous system.

Eardrum

A thin membrane in the ear that vibrates in response to sound waves, thereby transmitting sound to the inner ear.

Sound Waves

Sounds that move through air or a different substance and become audible when they arrive at a person's or animal's eardrum.

Frequencies

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves) or in an electromagnetic field (as in radio waves and light), usually measured in hertz.