Which Is Not a Difference Between Adjusting and Correcting Entries

question 156

Multiple Choice

Which is not a difference between adjusting and correcting entries?

• A) Adjusting entries are an integral part of the accounting cycle while correcting entries are unnecessary if the records are error-free.
• B) Companies journalize and post adjustments only at the end of an accounting period, while companies make correcting entries whenever they discover an error.
• C) Adjusting entries always affect at least one balance sheet account and one income statement account, while correcting entries may involve any combination of accounts in need of correction.
• D) Correcting entries must be posted before closing entries while adjusting entries are posted after closing entries.

Master techniques for emphasizing ideas and achieving conciseness in writing.

Understand various channels of communication and their appropriate contexts.

Recognize the significance and impact of nonverbal communication in different settings.

Differentiate between communication media based on audience size, confidentiality, and interaction.

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Definitions:

Bank Draft

A check drawn by one bank on another bank in which it has funds on deposit in favor of a third person, the payee. Also called teller’s check.

Assigned

The act of transferring rights or duties under a contract or agreement from one party to another.

Rights

Entitlements or freedoms that are guaranteed by law or social norms.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, providing a way to eliminate or repay some or all debt under the protection of the bankruptcy court.