Adjusting entries are made
A)to match the consumption of prepaid assets against current revenues
B)to record accrued expenses
C)to record estimated items, such as depreciation
D)for all of these reasons

Question

Quizplus · Accepted Answer

Adjusting entries are made for all of these reasons. Adjusting entries are made at the end of the accounting period to ensure that the financial statements reflect the correct financial position and results of operations. These entries may include matching the consumption of prepaid assets against current revenues, recording accrued expenses, and recording estimated items such as depreciation.

Adjusting Entries Are Made