Adjusting entries are

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to ensure that financial statements are accurate and comply with the accounting principles. They are made at the end of the accounting period before the financial statements are prepared. Option A is incorrect because adjusting entries are necessary even if the accounting system is operating properly. Option C is incorrect because adjusting entries are made to correct errors or include transactions that have not yet been recorded, not because management desires to change an account balance. Option D is incorrect because adjusting entries can be made to both income statement and balance sheet accounts.

Adjusting Entries Are