Adjusting Entries Made at the End of an Accounting Period

question 165

Multiple Choice

Adjusting entries made at the end of an accounting period accomplish all of the following except:

• A) Assigning expenses to the periods in which they are incurred.
• B) Assigning revenues to the periods in which they are earned.
• C) Assuring that financial statements reflect the revenues earned and the expenses incurred.
• D) Updating liability and asset accounts to their proper balances.
• E) Assuring that external transaction amounts remain unchanged.

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Definitions:

Warrants

Financial instruments that give the holder the right to purchase shares of a company at a specific price within a certain time period.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

SEC Regulations

Rules and laws that the U.S. Securities and Exchange Commission enforces to protect investors, maintain fair and orderly functioning of the securities markets.

Online Advertising

Online advertising is a form of promotion that uses the internet to deliver marketing messages to attract customers, utilizing various platforms such as social media, search engines, and websites.