Adjusting Entries Are Journal Entries Made at the End of an Accounting

question 134

Multiple Choice

Adjusting entries are journal entries made at the end of an accounting period for the purpose of:

• A) Updating related liability and asset accounts.
• B) Assigning revenues to the period in which they are earned.
• C) Assigning expenses to the period in which the expiration of benefit has incurred.
• D) Recording internal transactions.
• E) All of these answers are correct.

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Definitions:

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of an asset than the straight-line method, basing calculations on the sum of the years of the asset’s life.

Resale Value

The expected market value or price at which an asset, such as a vehicle or property, can be sold again.

Equipment

Tools, machinery, or other apparatus used for specific purposes, especially in industrial or professional settings.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation rate, reducing the book value of assets more quickly.