Why Is It Necessary to Make Adjusting Entries

question 19

Multiple Choice

Why is it necessary to make adjusting entries?

• A) The accountant has made errors in recording external transactions.
• B) Certain facts about the affairs of the business are not included in the ledger as built up from external transactions.
• C) The accountant wants to show the largest possible net income for the period.
• D) The accountant wants to show the net cash flow for the year.

Calculate the required savings contributions to meet a specific financial goal within a given time frame.

Understand and calculate the present value of an annuity and its implications for loan repayment and investment analysis.

Recognize the impact of inflation on saving and borrowing and adjust financial planning accordingly.

Analyze and apply the principles of mortgage payments, including the allocation of payments towards interest and principal over time.

---

Definitions:

Title

A legal term referring to a rightful ownership of property, assets, or the evidence thereof.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform international sales law.

Contract Of Sales

A legal agreement between a buyer and a seller for the exchange of goods, services, or property for payment or promise of payment.

Merchant

An individual or business engaged in the selling of goods, especially on a large scale or with specialized knowledge.