Adjustments help to ensure that all ______ are recorded in the period in which they are incurred.

Question

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Adjustments are made to ensure that all expenses (and revenues) are recorded in the period in which they occur, even if cash transactions haven't necessarily taken place. Adjustments help to accurately reflect the financial position and performance of a company. Cash transactions are not always recorded in the period they occur (e.g. if payment is made in advance or if payment is received after the service has been provided), so adjustments help to ensure that the accounts are accurate. Closing entries and journal entries are related to the process of finalizing the accounts at the end of the accounting period.

Adjustments Help to Ensure That All ______ Are Recorded in the Period