Adjusting Entries Are Recorded in the ________

question 105

Multiple Choice

Adjusting entries are recorded in the ________.

• A) cash payments journal
• B) purchases journal
• C) cash receipts journal
• D) general journal

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time with each sale or purchase, providing a continuous record of inventory counts.

Periodic Inventory System

An inventory system that updates inventory balances after a set period by taking a physical inventory count.

First-In, First-Out (FIFO)

An inventory valuation method that assumes the first items placed into inventory are the first sold, affecting the cost of goods sold and inventory value.