Adjusting entries prepared for interim financial statements are:
A) always recorded in the journal.
B) always recorded in the ledger.
C) often recorded on a worksheet.
D) there are usually no adjusting entries made when interim financial statements are prepared.

Question

Quizplus · Accepted Answer

Adjusting entries for interim financial statements are often recorded on a worksheet, which allows for easy organization and preparation of the financial statements. This worksheet serves as a temporary record for the adjustments, and the final adjustments are recorded in the journal and ledger after the financial statements have been completed.

Adjusting Entries Prepared for Interim Financial Statements Are