Adjusting entries must be posted before the closing process begins.

Name: Adjusting entries must be posted before the closing process begins.
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Question

Quizplus · Accepted Answer

Adjusting entries are made in the accounting journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. They must be completed before the closing process to ensure that the financial statements reflect the correct revenues and expenses for the period.

Adjusting Entries Must Be Posted Before the Closing Process Begins