The Preparation of Adjusting Entries Is

question 114

Multiple Choice

The preparation of adjusting entries is

• A)straight forward because the accounts that need adjustment will be out of balance.
• B)often an involved process requiring the skills of a professional.
• C)only required for accounts that do not have a normal balance.
• D)optional when financial statements are prepared.

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Definitions:

Expert Power

The influence that one has over others as a result of specialized knowledge, skills, or expertise.

Legitimate Power

Authority or power derived from a position, role, or legal standing, which is recognized and accepted by others.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties.

Reward Power

The capacity to offer something desirable to influence another’s behavior or decisions.