How does the timing of adjusting entries differ from the accounting for daily transactions? Adjustments are made at the beginning of the accounting period to ensure accuracy is maintained during the cycle. Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient. Adjustments are made throughout the accounting period as information becomes available. Adjustments are made at the discretion of management and are not necessary for each accounting period.

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Business

Tristan Fuller

27 May, 16:39

How does the timing of adjusting entries differ from the accounting for daily transactions? Adjustments are made at the beginning of the accounting period to ensure accuracy is maintained during the cycle. Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient. Adjustments are made throughout the accounting period as information becomes available. Adjustments are made at the discretion of management and are not necessary for each accounting period.

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Tristan Hammond · Answer 1

Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient.

Explanation:

Adjusting entries are adjustments made on accounts to recognize revenue or expenses that were not properly recorded before. They are usually done at the end of the month or the end of the accounting period to balance debit and credit records.

While you record daily transactions the same day in which they occur.