Adjusting entries
A) ensure that the revenue recognition and expense recognition principles are followed.
B) are necessary to enable the financial statements to conform to International Financial Reporting Standards (IFRS).
C) include both accruals and deferrals
D) all of these answer choices are correct.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that the revenue recognition and expense recognition principles are followed (A) and also to enable the financial statements to conform to International Financial Reporting Standards (B). Adjusting entries include both accruals and deferrals (C). Therefore, all of these answer choices are correct (D).

Adjusting Entries