Adjustments are needed to ensure that the accounting system records all of the revenues and expenses that relate to that period.
BT: Knowledge

Question

Quizplus · Accepted Answer

Adjustments are necessary to ensure that the accounting system records all of the revenues and expenses that relate to the period. This is a fundamental concept in accrual accounting, where revenues and expenses are recorded in the period in which they occur, regardless of when cash is received or paid out. Therefore, adjustments are necessary to accurately calculate the financial position and performance of a company.

Adjustments Are Needed to Ensure That the Accounting System Records