An adjusting entry is required whenever all economic events that have occurred are not already reflected in the accounts.

Name: An adjusting entry is required whenever all economic events that have occurred are not already reflected in the accounts.
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Question

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Adjusting entries are necessary to update the accounts to reflect unrecorded economic events or transactions. Without adjusting entries, the financial statements may not accurately represent the current financial status of the entity.

An Adjusting Entry Is Required Whenever All Economic Events That