Adjusting Entries Are

question 80

Multiple Choice

Adjusting entries are:

• A)a key element of accrual accounting.
• B)required in both accrual and cash-basis accounting.
• C)recorded only on the worksheet.
• D)recorded in the general journal but not on the worksheet.

---

Definitions:

Price Hike

An increase in the price of goods or services offered by a company.

Value-Based Pricing

A pricing strategy where the selling price of a product or service is based on the perceived value to the customer rather than the cost of production or market price.

Operating Cost

The expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Useful Life

The estimated duration a long-term asset is expected to be economically utilizable before it needs to be replaced or significantly overhauled.