Status. What is the difference between a correcting entry and an adjusting entry? A. Correcting entries are updates required to bring accounts to the correct balances as of a certain date. Adjusting entries fix mistakes in the accounting system. B. Correcting entries require ane journal entry to fix and adjusting entries require two entries to fix. C. Correcting entries fix mistakes in the accounting system. Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date. D. Correcting entries and adjusting entries are the same type of entry just labelled differently. QUESTION 25 What is the main objective of financial reporting? A To provide cash projections for future accounting periods. 8. To provide information to users for decision making. C. To compare actual with budgeted results. D. To ensure an owner has the information necessary to decide what distribution to take. QUESTION 26 What are the three main financial statements? A Profit and Loss. Balance Sheet and Statement of Cash Flows 8. Budget to Actual, Balance Sheet and Statement of Cash Flows C. Profit and Loss, Trial Balance and Statement of Cash Flows D. Profit and Loss, Balance Sheet and Adjusted Trial Balance