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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