Why Are Adjusting Entries Prepared

question 108

Multiple Choice

Why are adjusting entries prepared?

• A)Because some accounts are not up to date.
• B)Because some day to day transactions have not been recorded.
• C)Because the unadjusted trial balance is not quite ready for preparing the financial statements.
• D)A and C

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Definitions:

Negligence Lawsuit

A legal action brought against an individual or entity for causing harm through careless actions or a failure to act when there was a duty to do so.

Heart Attack

A medical emergency condition occurring when the flow of blood to the heart is blocked, leading to damage of the heart muscle.

Reasonable Care

refers to the degree of caution and concern an ordinarily prudent person would use in similar circumstances to avoid harm or injury to others.

Elements Of Negligence

The components required to establish negligence, typically including duty, breach, causation, and damages.