Which of the following is true regarding adjusting entries? a.Adjusting entries are optional with accrual-basis accounting. b.Adjusting entries are dated as of the first day of the new accounting period. c.Adjusting entries are not posted to the ledger. d.Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period.
Which of the following is true regarding adjusting entries? a.Adjusting entries are optional with accrual-basis accounting. b.Adjusting entries are dated as of the first day of the new accounting period. c.Adjusting entries are not posted to the ledger. d.Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which of the following is true regarding adjusting entries ?
a.Adjusting entries are optional with accrual-basis accounting.
b.Adjusting entries are dated as of the first day of the new accounting period.
c.Adjusting entries are not posted to the ledger.
d.Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period.
Expert Solution
Explanation -
Adjusting Entry –
Adjusting Entries are the entries that make the accrual principle work for the organization. These entries make the cash transaction the accrual one. Adjusting entries do not include cash. This also ensures that the transactions incurred in the current accounting period will be recorded in the current period and adjust the prepaid and accrual if any for further periods.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education