To ensure that all economic events are properly reflected in the financial statements ________.
A) companies record adjusting entries
B) companies only record deferrals
C) companies only record accruals
D) companies use the cash basis of accounting

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that all economic events are accurately reflected in the financial statements, as they account for accrued and deferred items.

To Ensure That All Economic Events Are Properly Reflected in the Financial