Adjusting Entries Are Journal Entries Made at the End of an Accounting

question 58

Multiple Choice

Adjusting entries are journal entries made at the end of an accounting period for the purpose of:

• A)Recording internal transactions.
• B)Updating related liability and asset accounts.
• C)Assigning revenues to the period in which they are earned.
• D)Assigning expenses to the period in which the expiration of benefit has incurred.
• E)All of these answers are correct.

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Definitions:

Inventories

The stocks of goods, raw materials, and other assets that a company holds for the purpose of future sale or production.

Great Depression

A global economic crisis that occurred in the 1930s, marked by extreme financial hardship.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant political and geographic changes.

GDP

Gross Domestic Product, a standard measure of a nation's total economic production over a specified time period, representing the total value of all goods and services produced.