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:

Marketable Securities

Financial instruments that can be easily converted into cash, typically with high liquidity and short maturity periods.

Owners' Equity

The total assets of a business minus its total liabilities, representing the ownership interest of shareholders.

Computer Software

Consists of programs, procedures, and routines associated with the operation of a computer system.

Tangible Assets

Physical and material assets that have value, such as machinery, buildings, and inventory, which can be seen, touched, and quantified.