Adjusting Entries Are Needed to Correctly Measure the ________

question 214

Multiple Choice

Adjusting entries are needed to correctly measure the ________.

• A) ending balance in the Cash account
• B) net income (loss) on the balance sheet
• C) net income (loss) on the income statement
• D) beginning balance in the Cash account

---

Definitions:

Retail Method

An accounting practice used in the retail industry to estimate inventory costs based on the retail price.

Merchandise Inventory

Goods available for sale, valued at the lower of cost or market price, on a company's balance sheet.

Estimated Cost

A projection or approximation of the cost associated with manufacturing a product or completing a project.

Net Realizable Value

The estimated selling price of goods minus any costs associated with their sale or disposal.