Adjusting Entries Should Be Made ______________ Preparing Financial Statements

question 20

Multiple Choice

Adjusting entries should be made ______________ preparing financial statements.

• A)Before
• B)During
• C)After
• D)Never

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Definitions:

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including the cost of the materials and labor directly used to create the good.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used, instead of being derived from the income statement.

Cost of Goods Sold

The expenses directly tied to the manufacturing of the products a company sells, including labor and materials.

Accounts Payable

Represents the amount a company owes to its suppliers or creditors for goods and services received but not yet paid for.