Adjusting entries are made to ensure that:
A) expense are recognized in the period in which they are incurred.
B) revenues are recorded in the period in which the performance obligation is satisfied.
C) balance sheet and income statement accounts have correct balances at the end of an accounting period.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that expenses and revenues are recorded in the correct accounting period, and that the financial statements reflect accurate balances for both balance sheet and income statement accounts.

Adjusting Entries Are Made to Ensure That