Adjusting entries are prepared after the statement of financial position date but are dated as of the statement of financial position date. They are required to conform the financial statements with International Financial Reporting Standards (IFRS). Adjusting entries include both accruals and deferrals. Therefore, option D "All of the choices are correct regarding adjusting entries" is the correct answer.

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Adjusting Entries

Question 83

Multiple Choice

Adjusting entries

A) Are often prepared after the statement of financial position date, but dated as of the statement of financial position date.
B) Are necessary to enable the financial statements to conform to International Financial Reporting Standard (IFRS) .
C) Include both accruals and deferrals.
D) All of the choices are correct regarding adjusting entries.

Correct Answer: