Some accounts should be adjusted because a) there are never enough accounts to r

Question

Some accounts should be adjusted because a) there are never enough accounts to record all the transactions b) they are not up-to-date at the time financial statements are prepared c) there are always errors made in recording transactions d) management can’t decide what they want to report e) none of them Some accounts should be adjusted because a) there are never enough accounts to record all the transactions b) they are not up-to-date at the time financial statements are prepared c) there are always errors made in recording transactions d) management can’t decide what they want to report e) none of them

Explanation / Answer

Solution: Option B ( They are not up to date at the time financial statements are prepared )

Explanation: There are certain accounts which need to be adjusted at the time of preparation of financial statement due to accrual concept of accounting. For an example, the Financial year starts on January 1 and ends on 31st December. The salary for December month is due on 31st December and paid in the 1st week of January.

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