The main purpose of adjusting entries is to
A) Record external transactions and events
B) Record internal transactions and events
C) Recognize revenues received during the period
D) Recognize expenses paid during the period
E) Adjust assets to their market value

Question

Quizplus · Accepted Answer

Adjusting entries are made to record internal transactions and events that have not been captured in regular transactions during the accounting period. These adjustments are necessary to ensure that financial statements reflect accurate and complete information. Choices A, C, D, and E are incorrect because they do not accurately reflect the main purpose of adjusting entries.

The Main Purpose of Adjusting Entries Is to