A Company Must Make Adjusting Entries

question 87

Multiple Choice

A company must make adjusting entries

• A)To ensure that the revenue recognition and expense recognition principles are followed.
• B)Each time it prepares an income statement and a statement of financial position.
• C)To account for accurals or deferrals.
• D)All of the choices are correct regarding adjusting entries.

---

Definitions:

Taxi Company

A business entity that provides transportation services to passengers via vehicles, such as cars or vans, often on a metered fare basis.

Total Quality Management

A management approach focused on continuous improvement of processes, products, and services to enhance customer satisfaction.

Customer Expectations

The set of beliefs or standards that customers hold regarding the future performance and delivery of products and services.

Dispatching

The process of sending goods or transporting them to an intended destination.