A Company Must Make Adjusting Entries

question 296

Multiple Choice

A company must make adjusting entries

• A) to ensure that the revenue recognition and expense recognition principles are followed.
• B) each time it prepares an income statement and a statement of financial position.
• C) to account for accruals or deferrals.
• D) all of these answer choices are correct.

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Definitions:

Parliamentary Supremacy

The principle that Parliament has the supreme authority to make or repeal any law.

Confederation

The process that united the British colonies in North America as the Dominion of Canada in 1867.

Federal Jurisdiction

The legal authority of federal or national government bodies to legislate and adjudicate matters, as distinguished from state or local jurisdictions.

Personal Freedoms

The rights and liberties that allow individuals to express themselves, live without government interference, and make personal choices.