What Is the Difference Between a Correcting Entry and an Adjusting

question 6

Multiple Choice

What is the difference between a correcting entry and an adjusting entry?

• A)Correcting entries are updates required to bring accounts to the correct balances as of a certain date.Adjusting entries fix mistakes in the accounting system.
• B)Correcting entries require one journal entry to fix and adjusting entries require two entries to fix.
• C)Correcting entries fix mistakes in the accounting system.Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date.
• D)Correcting entries and adjusting entries are the same type of entry just labelled differently.

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide used by healthcare professionals to diagnose mental disorders.

American Psychiatric Association

A professional organization of psychiatrists aimed at advancing the understanding and treatment of mental disorders.

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, often involving analysis of symptoms and tests.

Psychological Disorders

Mental disorders characterized by dysfunctions in cognition, emotions, or behavior, significantly impacting daily life.