Which of the Following Is True About Adjusting Entries

question 50

Multiple Choice

Which of the following is true about adjusting entries?

• A)Entries are necessary due to the conservatism principle.
• B)Entries can be done at the beginning or end of the accounting period.
• C)They zero the balance of all income statement accounts.
• D)They are a necessary part of accrual-basis accounting.

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Definitions:

Population Variance

A statistical measure of the distribution of values in a population, indicating how much individuals within the population differ from the population mean.

Upper Limit

The maximum value in a set or the highest value that a variable can take.

Significance Level

A threshold chosen by a researcher or statistician below which a p-value indicates a statistically significant result, rejecting the null hypothesis.

Mean Age

The average age of all individuals in a particular group or set, calculated by summing their ages and dividing by the number of individuals.