One of the Major Advantages of Making Adjustments in Order

question 81

Multiple Choice

One of the major advantages of making adjustments in order to improve the quality of financial statements is that they:

• A)ensure that revenues and expenses are recognized during the period they are earned and incurred.
• B)ensure that all estimates of future activities are eliminated from consideration.
• C)ensure that revenues and expenses are recognized conservatively during the period in which they are paid.
• D)provide an opportunity to manipulate the numbers to the best advantage of the reporting company.

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