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Questions and Answers
Which type of accounting basis requires adjusting journal entries?
Which type of accounting basis requires adjusting journal entries?
- Cash basis
- Modified basis
- Hybrid basis
- Accrual basis (correct)
When should adjusting journal entries be made?
When should adjusting journal entries be made?
- Throughout the fiscal year (correct)
- Never
- At the beginning of the fiscal year
- At the end of the fiscal year
Why are adjusting journal entries important?
Why are adjusting journal entries important?
- To automate accounting processes
- To increase revenue
- To improve the precision of account balances (correct)
- To decrease expenses
What can happen if adjusting journal entries are not managed properly?
What can happen if adjusting journal entries are not managed properly?
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What does the accounting cycle involve?
What does the accounting cycle involve?
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