These entries are prepared and posted to the ledger in order to update the ledger accounts before the next accounting period
A) trial balance.
B) adjusting entries.
C) journalizing.
D) general journal.

Question

Quizplus · Accepted Answer

Adjusting entries are prepared at the end of an accounting period to update accounts before the financial statements are prepared. They are made to ensure that revenue and expenses are recognized in the correct period and that the balance sheet reflects the true financial position of the business. These adjusting entries may include the recognition of prepaid expenses or unearned revenue, as well as adjusting for accrued expenses or revenue. The trial balance is a list of all accounts and balances at a point in time and does not necessarily reflect any necessary adjustments. Journalizing and the general journal are steps in the accounting process but not specifically related to adjusting entries.

These Entries Are Prepared and Posted to the Ledger in Order