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.

Comprehend the recording of inventory purchases and sales in accounting systems.

Identify the items that are included or excluded in calculating the cost of ending inventory.

Calculate the net income and gross profit from given financial data.

Recognize the terms related to title passage between buyer and seller, including FOB shipping point and FOB destination.

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Definitions:

Final Settlement

The conclusive resolution and payment of all dues or claims at the end of a contract, employment, or legal dispute.

All Jurisdictions

Refers to every area or sector under legal or governmental authority.

Managing Change

The process of guiding an organization through transitions or adjustments to its operations or culture.

Union Involvement

The participation and influence of labor unions in negotiating wages, benefits, and working conditions, and protecting the rights of their members.