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.

---

Definitions:

Property Ownership

The legal right or title to possess, use, and dispose of physical or intellectual property.

Sedition

Conduct or speech inciting rebellion against the authority of a state or sovereign.

Latin Phrases

Expressions or sayings that are in Latin, often used in legal, medical, scientific, and literary contexts.

John Locke

A 17th-century English philosopher and political theorist, often credited as a founder of modern liberal democracy and known for his theories on the social contract and natural rights.