The purposes of the adjusting process are:
A)to adjust asset and liability balances to the proper accrual basis.
B)to adjust expenses and revenues to the proper accrual basis.
C)to adjust expenses and revenues as well as asset and liability balances to the proper accrual basis.
D)None of the above.

Question

Quizplus · Accepted Answer

The adjusting process aims to ensure that both expenses and revenues, as well as asset and liability balances, are recorded in accordance with the accrual basis of accounting, reflecting the true financial position and performance of a business.

The Purposes of the Adjusting Process Are