Adjusting entries are
A) not necessary if the accounting system is operating properly.
B) usually required before financial statements are prepared.
C) made whenever management desires to change an account balance.
D) made to statement of financial position accounts only.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that revenues and expenses are recorded in the correct accounting period, which is essential before preparing accurate financial statements.

Adjusting Entries Are