Adjusting Journal Entries Are Made at the End of the Period

question 38

Multiple Choice

Adjusting journal entries are made at the end of the period when

• A)The cash basis of accounting is used for all accounting periods.
• B)Cash receipts and payments occur before or after the point in time when revenues and expenses should be recognized under the accrual basis of accounting.
• C)Management reports its adjustments on the statement of cash flows.
• D)The company reports revenue in the same period cash is collected.

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Definitions:

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex cognitive behavior, decision making, and moderating social behavior.

Myelination

The process by which axons are coated with a fatty sheath called myelin, increasing the speed at which electrical impulses are conducted.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward.

Agreeableness

A personality trait characterized by qualities such as being kind, sympathetic, cooperative, warm, and considerate towards others.