The Purpose of Adjusting Entries Is To

question 13

Multiple Choice

The purpose of adjusting entries is to:

• A) Adjust the Retained Earnings account for the revenue, expense, and dividends recorded during the accounting period.
• B) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transactions.
• C) Apply the realization principle and the matching principle to trans?actions affecting two or more accounting periods.
• D) Prepare revenue and expense accounts for recording the transactions of the next accounting period.

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Definitions:

Stimulus Energies

The physical energy forms, such as light and sound, that activate sensory receptors and contribute to sensory processing.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting them into electrical signals sent to the brain.

Pheromones

Chemical substances released by animals and humans that trigger social responses in members of the same species.

Sexual Mates

Individuals selected based on certain criteria or preferences for engaging in sexual reproduction or activity.