Adjusting Entries Always Include

question 118

Multiple Choice

Adjusting entries always include

• A) only income statement accounts
• B) only balance sheet accounts
• C) the cash account
• D) at least one income statement account and one balance sheet account

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Definitions:

Prospectus

A written document filed with the SEC that contains a description of a security and other financial information regarding the company offering the security; also distributed as an advertising tool to potential investors.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Civil Suit

A legal proceeding in which one party sues another for a wrong that does not involve criminal sanctions, seeking remedies such as damages or specific performance.

Misleading Statement

Information or assertions that are deceptive, untrue, or create a false impression.