Adjusting Entries Are

question 40

Multiple Choice

Adjusting entries are

• A) not necessary if the accounting system is operating properly.
• B) usually required before financial statements are prepared.
• C) made whenever management desires to change an account balance.
• D) made to statement of financial position accounts only.

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Definitions:

Cash Withdrawal

The act of taking money out of a bank account, which decreases the account balance.

Accounts Receivable

Unsettled dues from customers to a business for goods or services that have already been delivered or used.

Fees Earned

Revenue generated from providing services to clients or customers.

Unadjusted Trial Balance

A list of all ledger accounts and their balances at a certain time before any adjustments are made for year-end closing.