Adjusting Entries Are

question 36

Multiple Choice

Adjusting entries are

• A) the same as correcting entries
• B) needed to bring accounts up to date and match revenue and expense
• C) optional under generally accepted accounting principles
• D) rarely needed in large companies

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Definitions:

Operating Profit

Income generated from the principal activities of a company, not including interest and tax deductions.

Retail Price

The price at which goods or services are sold to the public.

Trade Discount

A reduction in the list price of goods or services offered to buyers, typically in the business-to-business market.

Wholesalers

Businesses or individuals that sell goods in large quantities at lower prices, typically to retailers or professional buyers.