Which of the following statements regarding the need for adjustments is not true?
A)Without adjustments,the financial statements present an incomplete and misleading picture of the company.
B)Adjusting entries are intended to change the operating results to reflect management's objectives for operating performance.
C)Adjustments help the financial statements to present the best picture of whether the company's activities were profitable for the period.
D)Adjustments help the financial statements to present the economic resources the company owns and owes at the end of the period.

Question

Quizplus · Accepted Answer

Adjusting entries are not intended to change management's objectives for operating performance. Rather, adjusting entries are necessary to accurately report the company's financial position and operating results in accordance with generally accepted accounting principles (GAAP). Adjustments ensure that revenues and expenses are recognized in the appropriate period, and that assets and liabilities are correctly valued on the balance sheet.

Which of the Following Statements Regarding the Need for Adjustments