Question

Which of the following adjustments would be required at the end of the period? (Check all that apply.)

a) Accrued revenues
b) Common stock deferral adjustment
c) Accrued expenses
d) Cash accrued expenses
e) Deferred revenues
f) Deferred expenses

Answer 1

End-of-period adjustments typically required include accrued revenues, accrued expenses, deferred revenues, and deferred expenses. Adjustments such as common stock deferral and a category named 'cash accrued expenses' are not standard or do not exist as typical end-of-period adjustments in accounting.

Step-by-step explanation:

At the end of an accounting period, businesses must make certain adjustments to ensure that their financial statements reflect the true financial position and performance of the company. The adjustments that would typically be required include:

• Accrued revenues: Income that has been earned but not yet received should be recorded.
• Accrued expenses: Expenses that have been incurred but not yet paid should be recorded.
• Deferred revenues: Income received in advance for services or goods to be provided in the future should be recorded as a liability until the service or product is delivered.
• Deferred expenses: Payments made in advance for expenses that will be incurred in the future should be recorded as an asset and expensed when the associated service or product is used or consumed.

Common stock deferral adjustment would not generally be an end-of-period adjustment as common stock transactions relate to the equity of the company and are not typically adjusted in the same way as revenues and expenses. Similarly, 'cash accrued expenses' is not a standard accounting term or category for end-of-period adjustments.