When Determining the Adjusting Entries That May Be Needed

question 78

Multiple Choice

When determining the adjusting entries that may be needed:

• A) prepaid rent requires an accrual adjustment.
• B) a deferral is an adjustment for payment of an item in advance.
• C) a deferral is an adjustment for the receipt of cash after the service has been performed.
• D) unpaid salaries requires a deferral adjustment.

---

Definitions:

Relative Confidentiality

A principle that acknowledges confidentiality may be situational and not absolute, varying with context and necessity.

Client's Privacy

The protection of personal and sensitive information of clients, ensuring it is not disclosed without consent and is handled with confidentiality.

Disclosure

The act of making something known or public, especially information that was previously secret or confidential.

Conflicts of Interest

Situations in which a person or organization is involved in multiple interests, financial or otherwise, which could potentially interfere with their duties or impartiality.