This is the first multiple choice question (MCQ) test on adjusting entries. This MCQ test will help you to prepare for your exams, interviews, and other assessments.
Just click the “Start quiz” button below to begin the quiz. If you find it difficult to answer any of these questions, you can learn more about adjusting entries on our website.
You may also check:
Adjusting Entries MCQs 1 FAQs
Adjusting Entries journal entries made to correct the accounting records of a company. They are used to ensure that the Financial Statements of a company accurately reflect the company's financial position. Adjusting Entries can be made for a variety of reasons, such as correcting errors, accruing expenses and revenue, and adjusting inventory levels.
Some common types of Adjusting Entries include the following: accruing expenses, accruing revenue, correcting errors, and adjusting inventory levels.
Adjusting Entries are important because they help to ensure that the Financial Statements of a company are accurate and reliable. By making adjustments to the accounting records, companies can ensure that their financial position is accurately reflected in the Financial Statements. This can help investors and other stakeholders to make informed decisions about investing in a company and can help to ensure that the Financial Statements are in compliance with accounting standards.
An adjusting entry is simply an adjustment to your books to make your Financial Statements more accurate, usually on an Accrual Basis.
Adjusting Entries are made toward the end of each accounting period. This can be at month-end or year-end.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.