One Way of Ensuring That Recurring Adjusting Journal Entries Are

question 81

Multiple Choice

One way of ensuring that recurring adjusting journal entries are made each month would be to

• A)make all the entries a month in advance.
• B)rotate the responsibility among the accounting staff.
• C)program the entries to be made automatically.
• D)create a standard adjusting journal entry file.

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Definitions:

Earnings Per Share

A financial metric that measures the amount of net income earned per share of stock, used to gauge a company's profitability.

Debt-To-Equity Ratio

A financial metric that shows the comparative amount of equity from shareholders and borrowed funds used to acquire assets for a company.

Solvency

The ability of an entity to pay its long-term debts and financial obligations as they become due.

Cash Ratio

A liquidity ratio that measures a company's ability to repay short-term obligations with cash and cash equivalents alone.