Adjusting entries are journal entries made at the end of an accounting period for the purpose of
A) Updating related liability and asset accounts
B) Assigning revenues to the period in which they are earned
C) Assigning expenses to the period in which the expiration of benefit has incurred
D) Recording internal transactions
E) All of these

Question

Quizplus · Accepted Answer

Adjusting entries are made to ensure that the accounts accurately reflect the financial transactions and events of the accounting period. They are made to update related liability and asset accounts, assign revenues to the period in which they are earned, assign expenses to the period in which the expiration of benefit has incurred, and record internal transactions. Therefore, all of the choices are correct.

Adjusting Entries Are Journal Entries Made at the End of an Accounting