Adjusting entries are
A)not necessary if the accounting system is operating properly.
B)usually required before financial statements are prepared.
C)made whenever management desires to change an account balance.
D)made to statement of financial position accounts only.

Question

Quizplus · Accepted Answer

Adjusting entries are essential for ensuring that the revenue recognition and matching principles are correctly applied, thereby ensuring that revenues and expenses are recorded in the period in which they occur. This process is crucial for the preparation of accurate financial statements, regardless of how well the accounting system is operating.

Adjusting Entries Are