Adjusting Entries Are Necessary to

question 21

Multiple Choice

Adjusting entries are necessary to
1. obtain a proper matching of revenue and expense.
2. achieve an accurate statement of assets and equities.
3. adjust assets and liabilities to their fair market value.

• A) 1
• B) 2
• C) 3
• D) 1 and 2

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Definitions:

Committed

Describes being dedicated or bound to a cause, activity, or goal, demonstrating loyalty or obligation.

Informational Social Influence

The process of changing one's behavior to fit in with the group due to the belief that the group is competent and has the correct information.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Individual

An Individual refers to a single, distinct person separate from a group or society, often considered in terms of unique psychological characteristics.