Which One of the Following Is Not a Justification for Adjusting

question 60

Multiple Choice

Which one of the following is not a justification for adjusting entries?

• A)Adjusting entries are necessary to ensure that revenue recognition criteria are followed.
• B)Adjusting entries are necessary to ensure that expense recognition criteria are followed.
• C)Adjusting entries are necessary to enable financial statements to be in conformity with IFRS or ASPE.
• D)Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

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Definitions:

Inductive Compensation

A method of connecting the compensating windings in a universal motor.

Universal Motor

A type of motor that can be operated on AC or DC power.

AC

Alternating Current refers to an electrical current that periodically changes its direction of charge flow.

DC

Direct Current, a type of electrical current where the flow of electric charge is only in one direction.