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

Question

Quizplus · Accepted Answer

Adjusting entries serve multiple purposes like recording internal transactions, updating liability and asset accounts, assigning revenues to the period in which they are earned, and assigning expenses to the period in which the expiration of benefit has incurred. Therefore, option E - "All of these answers are correct" is the best choice.

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