Adjusting Entries Are Unnecessary for Transactions That Do Not Involve

question 38

True/False

Adjusting entries are unnecessary for transactions that do not involve revenue or expense activities,such as selling common stock or paying dividends.

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Definitions:

Direct Costs

Expenses that can be directly traced to producing specific goods or services, such as materials and labor.

Indirect Costs

Costs that are not directly attributable to a specific project, product, or activity but are necessary for the general operation of a business.

Cost Approach

An evaluation method that estimates the value of an asset based on the cost to replace or reproduce it.

Ethical Companies

Businesses that operate in ways that are considered morally right, adhering to principles of fairness, honesty, and respect for people and the planet.