Which of the Following Statements About Adjusting Entries Is True

question 43

Multiple Choice

Which of the following statements about adjusting entries is true?

• A) Adjusting entries always include at least one balance sheet account and one income statement account.
• B) Adjusting entries may involve the cash account.
• C) Adjusting entries always involve an expense account.
• D) Adjusting entries are required whenever the accounting records are updated.

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Definitions:

Inception

The beginning or start of something, particularly an idea or project.

Slack

Excess capacity or time available in a system, often seen as a buffer to accommodate unforeseen circumstances.

Schedule

A plan for carrying out a process or procedure, listing the times at which specific events are intended to occur.

Articulating

The act of clearly expressing an idea, thought, or feeling through speech or writing.