Adjusting Entries Are Required

question 135

Multiple Choice

Adjusting entries are required

• A) because some costs expire with the passage of time and have not yet been journalized.
• B) when the company's profits are below the budget.
• C) when expenses are recorded in the period in which they are incurred.
• D) when revenues are recorded in the period in which they are earned.

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Definitions:

Terraces Mining

A method of mining that involves cutting flat areas or steps into sloping land, resembling agricultural terraces, to facilitate extraction of resources.

Metamorphic Rock

Type of rock that has undergone transformation by heat, pressure, or other natural processes, altering its original form without melting it.

Sediment

Particles of soil, sand, and minerals that settle at the bottom of bodies of water, often carried there by water flow or wind.

Waste Material

Unwanted or discarded substances resulting from industrial, commercial, domestic, or agricultural activities.