Which One of the Following Is Not a Justification for Adjusting

question 49

Multiple Choice

Which one of the following is not a justification for adjusting entries?

• A) Adjusting entries are necessary to ensure that the revenue recognition principle is followed.
• B) Adjusting entries are necessary to ensure that the expense recognition principle is followed.
• C) Adjusting entries are necessary to enable financial statements to be in conformity with GAAP.
• D) Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

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Definitions:

Passing Through

A term used to describe a line, curve, or surface meeting or going through a particular point or set of points.

Points

Specific locations in a space, defined by coordinates, with no dimension or size.

Slope

The measure of the steepness of a line, typically represented as the ratio of the vertical change to the horizontal change between two points on the line.