Adjusting entries are:
A)a key element of accrual accounting.
B)required in both accrual and cash-basis accounting.
C)recorded only on the worksheet.
D)recorded in the general journal but not on the worksheet.

Question

Quizplus · Accepted Answer

Adjusting entries are a fundamental component of accrual accounting, ensuring that revenues and expenses are recognized in the period in which they occur, rather than when cash is exchanged. This aligns with the matching principle of accounting.

Adjusting Entries Are