Adjusting entries are needed
A) to produce relevant financial information.
B) only under the cash basis of accounting.
C) to update accounts at the beginning of the accounting period.
D) for budgeting purposes.

Question

Quizplus · Accepted Answer

Adjusting entries are needed to ensure that the financial statements reflect relevant and accurate financial information by recognizing revenues and expenses in the correct accounting period.

Adjusting Entries Are Needed