Adjusting Entries

question 100

Multiple Choice

Adjusting entries:

• A) Affect only income statement accounts.
• B) Affect only equity accounts.
• C) Affect cash accounts.
• D) Affect only balance sheet accounts.
• E) Affect both income statement and balance sheet accounts.

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Definitions:

Seeking Damages

The legal process of requesting compensation for losses or harm suffered.

Proving Reasonableness

The process of demonstrating that an action, policy, or decision was reasonable under the circumstances, often in a legal context.

Contributory Negligence

A defense in torts law where, if the plaintiff is found to be partly at fault for the accident, they may be barred from receiving any compensation.

Standard of Care

The degree of attention, caution, and prudence that a reasonable person in similar circumstances would exercise.