Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent)at the end of the period are:
A)closing entries.
B)adjusting entries.
C)sales entries.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Adjusting entries are needed to update account balances for internal business transactions at the end of the period, such as supplies and prepaid rent. Closing entries are used at the end of the accounting period to transfer balances from temporary revenue and expense accounts to the permanent retained earnings account. Sales entries are used to record sales transactions, but not necessarily for updating account balances for internal transactions.

Journal Entries That Are Needed in Order to Update Account