Adjusting entries are journal entries made at the end of an accounting period for the purpose of:
A) Updating related liability and asset accounts.
B) Assigning revenues to the period in which they are earned.
C) Assigning expenses to the period in which the expiration of benefit has incurred.
D) Recording internal transactions.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Adjusting entries serve various purposes, including updating related liability and asset accounts, assigning revenues to the period in which they are earned, and assigning expenses to the period in which the expiration of benefit has incurred. Additionally, adjusting entries may also be used to record internal transactions. Therefore, all of the options presented in the question are correct.

Adjusting Entries Are Journal Entries Made at the End of an Accounting