Adjusting entries made at the end of an accounting period accomplish all of the following except:
A) Assigning expenses to the periods in which they are incurred.
B) Assigning revenues to the periods in which they are earned.
C) Assuring that financial statements reflect the revenues earned and the expenses incurred.
D) Updating liability and asset accounts to their proper balances.
E) Assuring that external transaction amounts remain unchanged.

Question

Quizplus · Accepted Answer

Adjusting entries do not affect external transaction amounts as they are made internally to ensure accurate financial reporting. Instead, they update account balances and allocate revenues and expenses to the appropriate periods.

Adjusting Entries Made at the End of an Accounting Period