Adjusting journal entries are normally not necessary when cash based accounting is used.

Name: Adjusting journal entries are normally not necessary when cash based accounting is used.
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Adjusting journal entries are typically used with accrual accounting to properly match revenue and expenses in the correct periods. However, cash-based accounting only records transactions when cash is received or paid, so there is no need for adjusting journal entries.

Adjusting Journal Entries Are Normally Not Necessary When Cash Based