The Main Purpose of Adjusting Entries Is to

question 48

Multiple Choice

The main purpose of adjusting entries is to

• A) Record external transactions and events
• B) Record internal transactions and events
• C) Recognize revenues received during the period
• D) Recognize expenses paid during the period
• E) Adjust assets to their market value

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Definitions:

Actual Reserves

The total amount of funds that a bank has in its vault or deposited with the central bank, available to meet withdrawal demands or regulatory requirements.

Federal Reserve Banks

The regional banks of the Federal Reserve System, the central bank of the United States, which regulate and serve banks, execute monetary policy, and provide financial services.

Privately Owned

Businesses or properties owned by individuals or corporations rather than by the government or public entities.

Publicly Controlled

Operations or organizations that are owned, operated, or regulated by the government or public authorities.