Adjusting entries are part of the measurement of net income for the period and financial position at the end of the period.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that revenues and expenses are recognized in the period in which they were earned or incurred, and that assets and liabilities are reported at their proper values. These adjustments are made at the end of a period and are a key part of determining the accurate net income and financial position of a company.

Adjusting Entries Are Part of the Measurement of Net Income