Adjusting entries are required:
A)because some costs expire with the passage of time and have not yet been journalized.
B)when the company's profits are below the budget.
C)when expenses are recorded in the period in which they are earned.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to account for costs that expire over time, such as depreciation or prepaid expenses, which have not yet been recorded in the accounting period.

Adjusting Entries Are Required