When Using a Worksheet Adjusting Entries Are Journalized

question 225

Multiple Choice

When using a worksheet adjusting entries are journalized

• A) after the worksheet is completed and before financial statements are prepared.
• B) before the adjustments are entered on to the worksheet.
• C) after the worksheet is completed and after financial statements have been prepared.
• D) before the adjusted trial balance is extended to the proper financial statement columns.

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Definitions:

Outstanding Checks

Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presented in a structured manner to understand financial conditions and operations.

Normal Balance

The side of an account (debit or credit) where increases are recorded, depending on the account type.

Permanent/Temporary

Refers to the duration of an object, situation, or condition, where "permanent" is enduring or lasting forever, and "temporary" is limited in time.