Which of the Following Is(are)true Regarding the Characteristics of Adjusting

question 4

Multiple Choice

Which of the following is(are) true regarding the characteristics of adjusting entries?

• A)Adjusting entries reduce the balance of revenue,expense,and dividend accounts to zero.
• B)Adjusting entries allow for the proper application of the revenue recognition principle.
• C)Adjusting entries allow for the proper application of the matching principle.
• D)Both b and c are true.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial stake in its success.

Acquiring Firm

A company that takes over or purchases another company, typically to expand its business operations or enter new markets.

Tender Offer

A public offer by one firm to directly buy the shares from another firm.

Target Firm's Management

The executives and administrators of a company that is the object of a merger or acquisition.