Adjusting entries are not necessary when cash is paid at the same time expenses are incurred.

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to ensure that financial statements accurately reflect the company's financial position and performance. If cash is paid at the same time expenses are incurred, then there is no need to adjust for accruals or deferrals as the transactions have already been recorded in the accounting system.

Adjusting Entries Are Not Necessary When Cash Is Paid at the Same