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:

Primary Cultivators

Individuals or groups who are directly involved in the growing and production of agricultural goods, playing a foundational role in the farming industry.

Portuguese Trading Posts

Outposts established by Portugal in the Age of Discovery, pivotal for trade, particularly in spices, gold, and slaves, across Africa, Asia, and South America.

Luxury Products

High-quality, often expensive, goods that are not essential but are desired for their status and pleasure they provide.

African Slaves

Individuals of African descent who were forcibly brought to the Americas and subjected to a life of servitude and exploitation, primarily in the agricultural economies of the colonies and the U.S. South.