Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.

Question

Quizplus · Accepted Answer

Accrual accounting requires the recognition of revenues and expenses when they are earned or incurred, regardless of when the actual cash is exchanged. Adjustments for accruals are necessary to ensure that financial statements accurately reflect the company's financial position and performance.

Adjustments for Accruals Are Needed to Record a Revenue That