Adjusting Entries are:
A)updating entries for previously unrecorded expenses or revenues.
B)corrections of errors.
C)not required.
D)will always affect cash.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to update accounts for previously unrecorded expenses or revenues. These adjustments are made at the end of an accounting period to ensure that the financial statements accurately reflect the company's financial position. Adjusting entries do not always affect cash and may be made to correct errors or allocate expenses and revenues to the appropriate period.

Adjusting Entries Are