Adjustments are only made if cash has been received or paid during the period.

Name: Adjustments are only made if cash has been received or paid during the period.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

Adjustments are made regardless of whether cash has been received or paid during the period. Adjustments are made to ensure that the financial statements reflect the actual economic activity of the business, even if the cash transactions have not occurred yet.

Adjustments Are Only Made If Cash Has Been Received or Paid