Accounts often need to be adjusted because
A) there is difficulty in determining which period a transaction should be recorded.
B) many transactions affect more than one accounting period.
C) there are always errors made in recording transactions.
D) management may direct expenses to be recorded in future periods to increase this period's profit.

Question

Quizplus · Accepted Answer

Many transactions affect more than one accounting period, requiring adjustments to ensure that revenues and expenses are recorded in the correct periods according to the matching principle.

Accounts Often Need to Be Adjusted Because