Which of the Following Statements Related to Adjusting Entries Is

question 97

Multiple Choice

Which of the following statements related to adjusting entries is incorrect?

• A) They do not involve cash.
• B) Total debits will equal total credits after recording adjusting entries.
• C) They sometimes involve cash.
• D) They are necessary to ensure that the financial statements are correct.
• E) They must be done before preparation of financial statements.

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Definitions:

Not Guilty By Reason Of Insanity

A verdict stating that defendants are not guilty of committing a crime because they were insane at the time of the crime.

Parens Patriae

The principle by which the state can make decisions to promote the individual’s best interests and protect him or her from self-harm or neglect.

Civil Commitment

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a psychiatric hospital.

State Decisions

Judgments or determinations made by government entities or authorities at the state level.