Adjusting entries should be prepared after financial statements are prepared.

Question

Quizplus · Accepted Answer

Adjusting entries should be prepared before financial statements are prepared in order to ensure that the financial statements are accurate and complete. Adjusting entries are made to record transactions or events that occurred during the accounting period but were not initially recorded, or to correct errors in previously recorded transactions. These adjustments are important in order to accurately reflect the financial position and performance of the company. Once adjusting entries have been made and the accounts have been adjusted, then financial statements can be prepared.

Adjusting Entries Should Be Prepared After Financial Statements Are Prepared