A Company Must Make Adjusting Entries

question 17

Multiple Choice

A company must make adjusting entries

• A)To ensure that the revenue recognition and expense recognition principles are followed.
• B)Each time it prepares an income statement and a statement of financial position.
• C)To account for accruals or deferrals.
• D)All of the choices are correct regarding adjusting entries.

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Definitions:

Mathematical Talent

Exceptional ability or skill in understanding and solving mathematical problems.

IQ

An abbreviation for Intelligence Quotient, a score derived from standardised tests designed to measure human intelligence and cognitive abilities.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group.

IQ

Stands for Intelligence Quotient, a standardized score designed to measure human intelligence through various cognitive tasks and assessments.