Which of the following types of entries is made primarily to help conform to the matching principle?
A) Reversing entries
B) Closing entries
C) Adjusting entries
D) Correcting entries

Question

Quizplus · Accepted Answer

Adjusting entries are made primarily to help conform to the matching principle, which requires that expenses be recognized in the same period as the revenue they helped to generate. Adjusting entries are made at the end of the accounting period to bring the accounts up to date and ensure that revenues and expenses are properly matched. Reversing entries, closing entries, and correcting entries are made for other purposes, such as to simplify the accounting process, close out temporary accounts, or correct errors.

Which of the Following Types of Entries Is Made Primarily