Adjusting entries are recorded at the end of each accounting period so that net income is accurately reflected in the financial statements for the period.

Question

Quizplus · Accepted Answer

This statement correctly describes the purpose of adjusting entries, which are necessary to properly record expenses and revenues that were not recorded during the accounting period. Without adjusting entries, the financial statements would not show an accurate picture of the company's net income for the period.

Adjusting Entries Are Recorded at the End of Each Accounting