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:

Malpractice Case

A legal case brought against a professional, such as a doctor or lawyer, for negligence or incompetence.

Motion for a New Trial

A legal request made by a party in a trial to have the trial heard again, either in part or in full, due to errors or new evidence.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Verdict

The formal decision or finding made by a jury or judge on the matters submitted to them in a trial.