Which One of the Following Best Describes the Characteristics of Adjusting

question 157

Multiple Choice

Which one of the following best describes the characteristics of adjusting entries?

• A)Adjusting entries reduce the balance of revenue,expense,and dividend accounts to zero.
• B)Adjusting entries allow for the proper recognition of cash flows.
• C)Adjusting entries allow for the proper recognition of investments from and distributions to stockholders.
• D)Adjusting entries allow for the proper recognition of revenue and expenses.

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Definitions:

Years Ago

A phrase used to denote a specific amount of time in the past counting backward from the current date.

Economic Sectors

The distinct areas of economic activity within an economy, such as agriculture, manufacturing, and services, each contributing to the overall economy.

Basic Sector

Economic activities that provide goods and services beyond the local market, contributing to a region's economic growth by bringing in external income.

Primary Sector

The sector of an economy involving the extraction and collection of natural resources, such as agriculture, forestry, fishing, and mining.