Amazon

question 33

Multiple Choice

Amazon:

• A) started making profits from the second year of its operation.
• B) initially adopted the domain of a non-profit organization.
• C) has centered its focus on quarterly results.
• D) has expanded to dozens of categories beyond books.
• E) has maintained consistent profitability over the years and analysts continue to predict profits in the firm's future.

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Reversing Entry

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

Disposes

Acts of transferring ownership or getting rid of assets, including selling, discarding, or recycling them.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous period.