The Preparation of Adjusting Entries Is

question 107

Multiple Choice

The preparation of adjusting entries is

• A) straight forward because the accounts that need adjustment will be out of balance.
• B) often an involved process requiring the skills of a professional.
• C) only required for accounts that do not have a normal balance.
• D) optional when financial statements are prepared.

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Definitions:

Valid and Enforceable

Legally binding and capable of being executed or implemented under the law.

Voluntary Consent

Knowing and voluntary agreement to the terms of a contract. If voluntary consent is lacking, the contract will be voidable.

Same Bargain

The agreement or deal that was originally made or intended by the parties involved, without any alterations.

Accept Without Adding

To agree or receive something as it is without making any modifications or changes.