Which of the Following Statements Regarding Adjusting Entries Is True

question 16

Multiple Choice

Which of the following statements regarding adjusting entries is true?

• A)Accountants use adjusting entries to record explicit transactions at the end of each reporting period.
• B)Adjusting entries are made on a daily basis as cash is exchanged between parties.
• C)Adjusting entries have nothing to do with accrual accounting.
• D)Adjusting entries are made at periodic intervals,usually when the financial statements are about to be prepared.
• E)The recording of cash receipts from customers is an example of an adjusting entry.

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