The main purpose of adjusting entries is to:
A) Correct errors in the accounting records.
B) Recognize assets purchased during the period.
C) Record internal transactions and events.
D) Recognize debts paid during the period.
E) Record external transactions and events.

Question

Quizplus · Accepted Answer

Adjusting entries are made to record internal transactions and events that have occurred but are not yet recorded in the accounts, ensuring that the financial statements reflect the true financial position of the company at the end of the accounting period.

The Main Purpose of Adjusting Entries Is To