Adjusting entries are NOT used to
A)obtain a proper matching of revenues and expenses.
B)adjust nominal accounts to zero at the end of the fiscal year.
C)report an accurate picture of assets, liabilities and equity.
D)report proper net income and comprehensive income.

Question

Quizplus · Accepted Answer

Adjusting entries are not used to adjust nominal accounts to zero; this is done through closing entries. Adjusting entries are used to ensure that revenues and expenses are recorded in the correct accounting period and to report accurate financial statements.

Adjusting Entries Are NOT Used to