Adjustments are often prepared
A)after the balance sheet date, but dated as of the balance sheet date.
B)after the balance sheet date, and dated after the balance sheet date.
C)before the balance sheet date, but dated as of the balance sheet date.
D)before the balance sheet date, and dated after the balance sheet date.

Question

Quizplus · Accepted Answer

Adjustments are made to ensure that financial statements are accurate and complete as of the balance sheet date. However, sometimes adjustments are identified after the balance sheet date, but they still relate to the period being reported on, so they are dated as of the balance sheet date. This is known as a post-balance sheet event. Therefore, choice A is the best answer.

Adjustments Are Often Prepared