The purposes of the adjusting process are:
A) to measure net income or loss and to update the balance sheet.
B) to compute ending retained earnings and to journalize the period's activity.
C) both A and B.
D) none of the above.

Question

Quizplus · Accepted Answer

The adjusting process is essential for measuring net income or loss accurately and for updating the balance sheet to reflect the true financial position of the company at the end of an accounting period.

The Purposes of the Adjusting Process Are