The accountant uses adjusting entries to record implicit transactions at the end of each reporting period.

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Adjusting entries are used by accountants to record implicit transactions that have occurred during the reporting period but have not yet been recorded. These entries help ensure that the financial statements reflect the company's true financial position and are prepared in accordance with generally accepted accounting principles (GAAP). Adjusting entries are typically made at the end of each reporting period, such as quarter-end or year-end, and may involve prepayments, accruals, or depreciation.

The Accountant Uses Adjusting Entries to Record Implicit Transactions at the End