Adjusting journal entries are prepared from
A) source documents.
B) the balance sheet.
C) the income statement.
D) the adjustments column of the worksheet.

Question

Quizplus · Accepted Answer

Adjusting journal entries are prepared based on the adjustments column of the worksheet to ensure that all revenues and expenses are recognized in the correct accounting period and that the balances of the balance sheet accounts are accurate. Source documents, the balance sheet, and the income statement may be used as references for making these adjustments, but they are not the primary source for creating adjusting journal entries.

Adjusting Journal Entries Are Prepared from