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12 February, 02:42

Adjusting entries: (Select all that apply.) a. are required in cash-basis accounting only. b. are needed before financial statement preparation. c. update the accounts to their proper balances. d. are prepared at the beginning of the period.

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  1. 12 February, 05:02
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    Option B and C are correct because adjusting entries arises due to mistakes and errors found in the recording of transactions and this does not arises in the start of the accounting period. It arises in the month ends and interim & final audits. The internal auditors also reviews the financial statements to eliminate all the errors and ommissions in the Financial statement.

    Option A is incorrect because adjusting entries are passed both in accrual accounting and cash accounting system.

    Option D is incorrect because these adjustments arises at the end of months and year audits.
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