Which of the Following Statements About the Need to Make

question 235

Multiple Choice

Which of the following statements about the need to make accrual adjustments at the end of the accounting period is not correct?

• A)Certain events occur over time that would be too tedious and time-consuming to record on a daily basis.
• B)Since financial statements are prepared at the end of the period,the asset and liability account balances should be brought up to date.
• C)The Cash account should be adjusted for the effects of accrued revenues and expenses during the accounting period.
• D)Revenues and expenses should be recorded in the period in which they occur,even though the cash will be paid or received in a future period.

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Definitions:

Public Policy

Government policies designed to address issues of public interest and welfare.

Assignment

The process of transferring rights or obligations from one party to another in a contract.

Delegation

The process of assigning responsibility and authority to someone to carry out specific activities, while the person delegating retains ultimate responsibility for its success.

Lawsuit

A legal action taken by one party against another in a court of law, usually seeking compensation for damages or enforcement of a right.