The purpose of adjusting entries is to:
A)Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period.
B)Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions.
C)Correct errors made during the accounting period.
D)Update the owners' equity account for the changes in owners' equity that had been recorded in revenue and expense accounts throughout the period.

Question

Quizplus · Accepted Answer

Adjusting entries are made to record revenue and expenses that are not properly measured in the course of recording daily routine transactions, such as accrued expenses or unearned revenue. Adjusting entries are not made to prepare revenue and expense accounts for the next accounting period, correct errors made during the accounting period, or update owners' equity account for changes in owners' equity.

The Purpose of Adjusting Entries Is To