Adjusting entries:

Question

Adjusting entries:

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Adjusting entries are required to be made before the preparation of financial statements to ensure that the accounts reflect the accurate and up-to-date information. These entries are made to record the transactions that have occurred but have not been reflected in the accounts, such as accrued expenses or prepaid expenses. They are also made to correct errors made in the previous journal entries. Additionally, not all balance sheet accounts require adjusting entries, as some accounts may not have any changes that need to be accounted for at the end of an accounting period.

Adjusting Entries