Adjusting Entries

question 80

Multiple Choice

Adjusting entries:

• A)Are generally made daily.
• B)Assign revenues to the period in which they are received.
• C)Generally fall into one of two categories.
• D)Are needed whenever revenue transactions affect more than one period.

Understand the characteristics that define an emerging disease.

Describe the lysogenic cycle of viruses.

Distinguish between cellular organisms and non-cellular entities.

Understand the sequence of events in the evolution of life on Earth.

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Definitions:

Contingent Liabilities

Possible obligations that might arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures.

Current Liabilities

Short-term financial obligations that a company is expected to pay within one year or one operating cycle, whichever is longer.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity levels for operating needs.