Adjusting entries:
A)Are generally made daily.
B)Assign revenues to the period in which they are received.
C)Generally fall into one of two categories.
D)Are needed whenever revenue transactions affect more than one period.

Question

Quizplus · Accepted Answer

Adjusting entries are needed whenever revenue transactions affect more than one period. They are typically made at the end of an accounting period, such as monthly or annually, in order to ensure that financial statements accurately reflect the company's financial position and performance. Adjusting entries can include accruals, deferrals, and estimates, and are made to both revenue and expense accounts.

Adjusting Entries