The purposes of the adjusting process are:
A) to adjust expenses and revenues to the proper accrual basis.
B) to adjust asset and liability balances to the proper accrual basis.
C) to adjust expenses and revenues as well as asset and liability balances to the proper accrual basis.
D) none of the above.

Question

Quizplus · Accepted Answer

The adjusting process involves ensuring that financial statements accurately reflect a company's financial performance and position. This involves adjusting expenses and revenues to the proper accrual basis, as well as adjusting asset and liability balances to the proper accrual basis. Therefore, both options A and B are incorrect, as they only address one aspect of the adjusting process. Option D is incorrect, as the adjusting process is an important part of accounting and financial reporting.

The Purposes of the Adjusting Process Are