The Preparation of Adjusting Entries Is

question 54

Multiple Choice

The preparation of adjusting entries is:

• A)straightforward because the accounts that need adjustment will be out of balance.
• B)needed to ensure that the expense recognition principle is followed.
• C)only required for accounts that do not have a normal balance.
• D)optional when financial statements are prepared.

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Definitions:

Compulsion

A strong, usually irresistible impulse to perform an act, especially one that is irrational or contrary to one's will.

Major Depression

An emotional health condition marked by ongoing feelings of sadness or a diminished interest in once enjoyable activities, significantly affecting daily living.

Manic Episode

A period characterized by abnormally elevated mood, energy levels, and unusual activity or behavior, often seen in bipolar disorder.

Racing Thoughts

A rapid flow of disjointed or excessive thoughts, often experienced in conditions like anxiety or bipolar disorder.