Adjustments are often prepared
A) after the balance sheet date, but dated as of the balance sheet date.
B) after the balance sheet date, and dated after the balance sheet date.
C) before the balance sheet date, and dated before the balance sheet date.
D) before the balance sheet date, and dated after the balance sheet date.

Question

Quizplus · Accepted Answer

Adjustments are usually prepared after the balance sheet date but are dated as of the balance sheet date to ensure that they are included in the proper accounting period. This ensures accuracy in the financial statements and provides a clear picture of the company's financial position at the balance sheet date. Therefore, option A is the best choice.

Adjustments Are Often Prepared