Concept explainers
Identify the name of end-of-period
Answer to Problem 1MC
Option b
Explanation of Solution
Justification for correct answer:
Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.
Justification for incorrect answers:
Option (a):
Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.
Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.
Hence, Option (b) is the correct answer.
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Chapter 3 Solutions
FINANCIAL ACCOUNTING
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- Which of the following statements concerning reversing entries is true? a. Reversing entries are required by Generally Accepted Accounting Principles. b. Reversing entries are most often used with accrual-type adjustments. c. Reversing entries are dated December 31, the end of the fiscal year. d. Reversing entries are recorded before adjusting entries.arrow_forwardWhich of the following accounts would not appear in aclosing journal entry?a. Interest Revenueb. Accumulated Depreciationc. Retained Earningsd. Salaries and Wages Expensearrow_forwardWhich of the following appears in the balance sheet accounts section of a pre-adjustment trial balance? A) Opening inventory B) Accrued expenses C) Consumable inventory D) Fixed depositarrow_forward
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