Accounts often need to be adjusted because
A) there are never enough accounts to record all the transactions.
B) many transactions affect more than one time period.
C) there are always errors made in recording transactions.
D) management can't decide what they want to report.

Question

Quizplus · Accepted Answer

Accounts often need to be adjusted because many transactions affect more than one time period. For example, prepaid rent is a payment made in one time period that affects the following months. Therefore, an adjustment is needed to properly allocate the cost to the correct time periods.

Accounts Often Need to Be Adjusted Because