Which of the Following Regarding Adjusting Entries Is Correct

question 10

Multiple Choice

Which of the following regarding adjusting entries is correct?

• A)Adjusting entries are recorded for all external transactions.
• B)Adjusting entries are recorded to make sure all cash inflows and outflows are recorded in the current period.
• C)Adjusting entries are needed because we use accrual-basis accounting.
• D)After adjusting entries,all temporary accounts should have a balance of zero.

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Definitions:

Chordal Thickness

The measurement of the thickness of a gear tooth along the chord, typically at the pitch circle.

Diametral Pitch

A measure of gear tooth density, defined as the number of teeth per inch of the diameter of the gear pitch circle.

Outside Diameter

The measurement of the largest dimension across the outer surface of a cylindrical or spherical object.

Rotary Motion

Movement in a circular path, revolving around an axis or center point.