Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 5

The purpose of adjusting entries is to:
a.djust the Retained Earnings account for the revenue, expense, and dividends recorded during the accounting period.
b.djust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transactions.
c.pply the realization principle and the matching principle to transactions affecting two or more accounting periods.
d.repare revenue and expense accounts for recording the transactions of the next accounting period.