Why Are Adjusting Entries Recorded at the End of the Accounting

question 77

Multiple Choice

Why are adjusting entries recorded at the end of the accounting period?

• A)The Cash account must be adjusted for the effects of the daily transactions with customers and creditors.
• B)The company's accounts must be adjusted to ensure that debits are equal to credits prior to preparing the trial balance.
• C)Unrecorded accruals and deferrals must be recognized before the financial statements can be prepared.
• D)The data from the temporary accounts (revenues,expenses,and dividends)must be moved into the retained earnings account.

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Definitions:

NLRB Certification

The official recognition by the National Labor Relations Board that a labor union is the authorized representative of a group of employees for collective bargaining purposes.

Employee Free Choice Act

Proposed U.S. legislation intended to ease the process for employees to form, join, or assist labor unions and to provide for mandatory injunctions for unfair labor practices during organizing efforts.

Authorization Cards

Cards signed by employees to indicate their wish to have a union represent them for collective bargaining purposes.

Nonunion Workers

Employees who are not members of a labor union and therefore do not receive the benefits of collective bargaining or labor union protections.