Ask Question
BusinessBusiness
10 September, 02:50

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

+2
Answers (1)
  1. 10 September, 03:45
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which position has the duty to examine the cost implications of a proposed bill?
Answers (1)
Which of the following would be an example of a fixed cost on a farm? a. mortgage on the landb. costs of seedc. fuel to operate machineryd. charge for fertilizer for the growing season
Answers (1)
Ill give someone brainliest if they give me brainliest
Answers (2)
LO 1.3 Jason and Mary are married taxpayers in 2018. They are both under age 65 and in good health. For 2018 they have a total of $41,000 in wages and $700 in interest income.
Answers (1)
An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.00 per unit. Fixed costs are$14,000 per month. Current volume is 30,000 units per month.
Answers (1)
New Questions in Business
Which of the following transactions would be recorded if using the accrual basis of accounting but not if using the cash basis of accounting? A. Paying off loans B. Purchasing inventory on account C. Collecting customer payments D. Borrowing money
Answers (2)
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when A. A royalty contract with a distribution in which the consideration to be received depends on sales to end customers. B.
Answers (1)
ALT Inc. conducts periodic reviews of the distribution of pay and the favorable outcomes granted to employees, such as promotions and increased office space.
Answers (1)
If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount? A. Decrease of $2,000 B. Decrease of $2,000 C. Increase of $10,000 D. Decrease of $10,000
Answers (1)
You are invited to go to the mall with a new group of friends from school. you don't know them that well, but are excited that they included you in their plans.
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?