Adjusting entries that are made to counteract the effects of errors found in the general ledger are called
A)accruals.
B)corrections.
C)deferrals.
D)estimates.

Question

Quizplus · Accepted Answer

Adjusting entries made to counteract errors found in the general ledger are called corrections. Accruals and deferrals are adjusting entries made to record revenues or expenses that have not yet been recognized, while estimates are used to allocate a portion of an asset's cost over its useful life.

Adjusting Entries That Are Made to Counteract the Effects of Errors