Adjustments would not be necessary if financial statements were prepared to reflect net income from
A) monthly operations.
B) fiscal year operations.
C) interim operations.
D) lifetime operations.

Question

Quizplus · Accepted Answer

Adjustments are necessary to allocate income and expenses to the correct period. If financial statements were prepared to reflect lifetime operations, there would be no need for periodic adjustments, as all transactions would be recorded in a single, continuous period.

Adjustments Would Not Be Necessary If Financial Statements Were Prepared