$2\mathrm{.}22$points

Time Remaining $52$ minutes $38$ seconds

$00$:$52$:$38$

Item $23$

Time Remaining $52$ minutes $38$ seconds

$00$:$52$:$38$

Which of the following is a characteristic of adjusting entries?

Multiple Choice

Allows for proper application of the revenue recognition principle $($revenues$)$ or expense recognition.

Recorded at the beginning of the accounting period.

Reduces the balances of revenue accounts to zero.

Used in cash$-$basis accounting.