Ask Question
BusinessBusiness
16 November, 21:23

Adjusting entries are made to ensure that?-expenses are recognized in the period in which they are incurred.-revenues are recorded in the period in which the performance obligation is satisfied.-All of these choices are correct.-None of the choices are correct.-balance sheet and income statement accounts have correct balances at the end of anaccounting period. e

+4
Answers (1)
  1. 16 November, 22:32
    0
    The correct option is all of these choices are correct.

    Explanation:

    Adjusting Entries: The adjusting entries are those entries which are adjusted at the end of the year.

    According to the statements given in the question:

    1. Whenever expenses are incurred, it is recognized in the financial statements on that year itself. Moreover, the adjustment entries is also made.

    Thus, the given statement is true

    2. Under revenue recognition principle, the revenue is recorded when products are supplied and services are rendered to the customers or the performance obligation is completed. Rather than payment is received or not.

    Thus, it is a part of adjustment entries

    3. If all the correct entries are passed and the income statement and the balance sheet are matched. Or we can say

    Assets = Owner's Equity + Liabilities

    So, it would be a part of adjusting entries.

    When all choices are correct. So, none of the choices are correct option is invalid.

    Hence, The correct option is all of these choices are correct.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Adjusting entries are made to ensure that?-expenses are recognized in the period in which they are incurred.-revenues are recorded in the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The Italian Bread Company purchased land as a factory site for $70,000. An old building on the property was demolished, and construction began on a new building.
Answers (1)
Which of these situations does NOT require a food handler to wash their hands? A. After handling garbage or dirty dishes B. After eating or smoking C. Before using the bathroom D. After sneezing, coughing, or blowing one's nose
Answers (1)
Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays.
Answers (1)
When filling out a credit card application, why is it important to list your own address and never a friend or a relatives?
Answers (1)
When does the cost of inventory become an expense? A. When cash is collected from the customer B. When inventory is purchased from the supplier C. When inventory is delivered to a customer D. When payment is made to the supplier
Answers (1)
New Questions in Business
If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent. a) true b) false
Answers (1)
Journalize the entries to record the following selected transactions: Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500.
Answers (1)
Which of the following is a factor to be considered in determining a limited-life intangible asset's useful life? (a) Any legal provisions that may limit the useful life. (b) The expected useful life of any related asset.
Answers (1)
If you see a large group of stranded passengers standing next to a disabled bus, and you have only three seats in your car, deciding who to rescue deals with the issue of:a) efficiencyb) equityc) scarcityd) macroeconomics
Answers (1)
Nonprofit organizations differ from profit organizations in that nonprofit organizations: Group of answer choices target the niches that may be most profitable.
Answers (1)
Home » Business » Adjusting entries are made to ensure that?-expenses are recognized in the period in which they are incurred.-revenues are recorded in the period in which the performance obligation is satisfied.-All of these choices are correct.
Sign Up Forgot Password?