Before making adjusting entries at the end of an accounting period, some accounts may 3)not show proper financial statement amounts even though all transactions were correctly recorded.

Question

Quizplus · Accepted Answer

Adjusting entries are made to correct any discrepancies in the financial statement amounts and to ensure that they accurately reflect the financial position of the company. Even if all transactions were correctly recorded, some accounts may still require adjustments to show their proper amounts.

Before Making Adjusting Entries at the End of an Accounting