stions 1 postponements and advances ions saved 2 accruals an

stions 1) postponements and advances. ions saved ·2) accruals and deferrals. 3) deferrals and postponements. 4) accruals and advances Save Question 9 (1 point) An adjusting entry can include a: 1) debit to an asset and a credit to a liability. 2) debit to a revenue and a credit to an asset. 3) debit to a liability and a credit to a revenue. 4) debit to an expense and a credit to a revenue. d Response ved Response tem Save Question 10 (1 point) Adjusting entries are: 1) not necessary if the accounting system is operating properly. 2) usually required before financial statements are prepared. 3) made whenever management desires to change an account balance. 4) made to balance sheet accounts only. Save Question 8 Saved Save All Responses Go to Submit Quiz

Solution

Adjusting entries are journal entries recorded toward the finish of an accounting period to change wage and cost accounts so they agree to the accrual idea of accounting. Their primary reason for existing is to coordinate earnings and costs to suitable accounting periods.

The exchanges which are recorded utilizing adjusting entries are not unconstrained but rather are spread over some undefined time frame. Not all journal entries recorded toward the finish of an accounting period are adjusting entries. For instance, a passage to record a buy on the most recent day of a period isn\'t an adjusting section. An adjusting section dependably includes either pay or cost account.

IN the given question the correct option is 3.

Dr to a liability and Cr to a revenue

For example.

Unearned Revenue Dr   3,000

Service Revenue   Cr     3,000

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Adjusting entries are made before preparing final statements, otherwise the statements wil not reflect true position and profitability of the company.

So correct option is 2.

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Hope that helps.

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