Which of the Following Regarding Adjusting Entries Is Correct

question 167

Multiple Choice

Which of the following regarding adjusting entries is correct?

• A)Adjusting entries are recorded for all external transactions.
• B)Adjusting entries are recorded to make sure all cash inflows and outflows are recorded in the current period.
• C)Adjusting entries are needed because we use accrual-basis accounting.
• D)After adjusting entries,all temporary accounts should have a balance of zero.

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Definitions:

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