What is the difference between adjusting entries and correcting entries?

A. Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

B. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.

C. Both adjusting entries and correcting entries are not a planned part of the accounting process.

D. Both adjusting entries and correcting entries are a planned part of the accounting process.

Question

Business

Jimena

28 July, 05:18

What is the difference between adjusting entries and correcting entries?

A. Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

B. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.

C. Both adjusting entries and correcting entries are not a planned part of the accounting process.

D. Both adjusting entries and correcting entries are a planned part of the accounting process.

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Answers (1)

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Diamond Mata · Answer 1

The difference between adjusting entries and correcting is that Adjusting entries are a planned part of the accounting process; correcting entries is not expected but arise when necessary to correct errors.

Explanation:

Adjusting entries are essential toward the finish of a bookkeeping period to bring the record exceptionally. Adjusting entries sections are required toward the finish of each bookkeeping period with the goal that an organization's budget summaries mirror the accumulation technique for accounting.

Correcting entries made to address a mistake in a recent transaction. Adjusting entries can include any blend of income statement records and balance sheet accounts.