When are adjusting entries made?

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of the accounting period to ensure that financial statements accurately reflect the company's financial position and performance. These entries are used to record accrued revenues, expenses, deferred revenues, and deferred expenses. Daily and weekly entries are generally used for routine transactions. Adjusting entries are made after the trial balance is prepared and before the financial statements are generated.

When Are Adjusting Entries Made