Homework Answers
Your required answer is optioin D i.e. Restate assets and liabilities to their current value.
Explanation:
Adjusting entries are passed to know the true and fair view of financial statement and therefore some ajustment entries like prepaid expense, expense payable, depreciation etc. are recorded at the end of the period and the process is called restating of assets and liabilities.
However option B could also be correct option since we do adjusting entries that we can get accurate statement of financial statements. (But since in this opiton it is said accurate statement of assets and equities, it's not included liabilities too) And because we can select only one option therefore option D is more appropriate option.
I hope this clear your doubt.
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