If Monthly Financial Statements Are Desired by Management

question 79

Multiple Choice

If monthly financial statements are desired by management:

• A)Journalizing and posting adjusting entries must be done each month.
• B)Journalizing and posting closing entries must be done each month.
• C)Monthly financial statements can be prepared from worksheets; adjustments and closing entries need not be entered in the accounting records.
• D)Adjusting and closing entries must be entered in the accounting records before preparation of interim financial statements.

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Definitions:

Certificates of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks and is insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain amount.