Adjusting entries are: a. usually required before financial statements are prepared. b. made whenever management desires to change an account balance. c. made to balance sheet accounts only. d. not necessary if the accounting system is operating properly.

Question

Business

Micah Pittman

9 September, 22:49

Adjusting entries are: a. usually required before financial statements are prepared. b. made whenever management desires to change an account balance. c. made to balance sheet accounts only. d. not necessary if the accounting system is operating properly.

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Answers (2)

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Sierra Brennan · Answer 1

a. usually required before financial statements are prepared.

Explanation:

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. Anadjusting entries are made during the accounting cycle, they will be made after the unadjusted trial balance and just prior to the time the company prepares its financial statements, bringing the amounts in the general ledger accounts to their proper balances.

Leyla · Answer 2

A. Usually required before financial statements are prepared

Explanation:

Adjustment entries are entries that are done at the end of one accounting period. The revenues and cost are properly adjusted for. It is required to properly account for transactions in that accounting period. These entries are done before financial statements are prepared. It's done to make sure that financial records adhere strictly to the revenue recognition and matching principles. They convert a company's record to accrual basis of accounting.