Adjusting entries are useful in allocating costs among two or more accounting periods.

Name: Adjusting entries are useful in allocating costs among two or more accounting periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to accurately allocate costs among the periods. This helps in ensuring that expenses are matched with the revenues they helped in generating, and also provides an accurate picture of the financial performance of the business.

Adjusting Entries Are Useful in Allocating Costs Among Two or More