Adjusting entries are a. the same as correcting entries b. rarely needed in large companies c. optional under generally accepted accounting principles d. needed to bring accounts up to date and match revenue and expense

Question

Business

Hezekiah Warner

20 January, 08:41

Adjusting entries are a. the same as correcting entries b. rarely needed in large companies c. optional under generally accepted accounting principles d. needed to bring accounts up to date and match revenue and expense

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Mathias Black · Answer 1

d. needed to bring accounts up to date and match revenue and expense

Explanation:

The adjusting entries are the entries that are recorded so that it fulfills the matching principle that stated the revenue of the particular period should be matched with the expenses of that period only.

Moreover, if any changes occur in day to day transactions, the same is to be presented on the financial statements after recording the adjusting entries so that it represents the true and fair view of statements