Accounts Often Need to Be Adjusted Because

question 94

Multiple Choice

Accounts often need to be adjusted because

• A) there are never enough accounts to record all the transactions.
• B) many transactions affect more than one time period.
• C) there are always errors made in recording transactions.
• D) management can't decide what they want to report.

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Definitions:

Time Extension

The act of prolonging a period or deadline, allowing more time for completion of a task or obligation.

Notes Receivable

Written promises for amounts to be received by a company, usually including interest, classified as an asset on the balance sheet.

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered or used but not yet paid for.

Current Liability

Financial obligations that a company is required to pay within one year or within its operating cycle, whichever is longer.