The Preparation of Adjusting Entries

question 9

Multiple Choice

The preparation of adjusting entries

• A)is straight-forward because the accounts that need adjustment will be out of balance.
• B)requires an understanding of the company's operations and the inter-relationship of accounts.
• C)is only required for accounts that do not have a normal balance.
• D)is optional when financial statements are prepared.

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Definitions:

Very High

"Very High" is an adjective used to describe an extreme or significantly above average level or degree of a certain measure or attribute.

Very Low

A descriptor indicating a significantly below-average quantity, degree, or level.

About Average

Refers to values or outcomes that fall near the middle or mean in a set of data.

Median

The middle value in a list of numbers, which separates the higher half of the data sample from the lower half.