Which of the Following Is Not a Purpose of Adjusting

question 50

Multiple Choice

Which of the following is not a purpose of adjusting entries?

• A)To prepare the revenue and expense accounts for recording transactions of the following period.
• B)To apportion the proper amounts of revenue and expense to the current accounting period.
• C)To establish the proper amounts of assets and liabilities in the balance sheet.
• D)To accomplish the objective of offsetting the revenue of the period with all the expenses incurred in generating that revenue.

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment, accounting for its time value of money.

Capital Budgeting

The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.

Screening Tool

A method or instrument used to assess or evaluate certain characteristics in individuals or scenarios, often used in healthcare, employment, and research.

Net Present Value

Net Present Value calculates the difference between the present value of cash inflows and the present value of cash outflows over a period, used to assess the profitability of investments.