In a service business, revenue is considered earned:Group of answer choicesat the end of the month.at the end of the year.when the service is performed.when cash is received.

The statement that is not a justification for adjusting entries is:

Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

Here's why:

1. Adjusting entries are made at the end of an accounting period to correctly assign revenues and expenses to the time period in which they actually occurred.

2. The revenue recognition principle and the matching principle are fundamental accounting principles that require revenues and expenses to be recognized in the period they are earned or incurred, regardless of when cash is received or paid. Therefore, adjusting entries are necessary to ensure these principles are followed.

3. Adjusting entries also help financial statements to conform with the Generally Accepted Accounting Principles (GAAP), which require revenues and expenses to be recognized in the period they are earned or incurred.

4. However, adjusting entries are not made to bring the general ledger accounts in line with the budget. The budget is a planning tool and does not affect the actual accounting records. Therefore, this statement is not a justification for adjusting entries.

In a service business, revenue is considered earned:

When the service is performed.

Here's why:

1. The revenue recognition principle in accounting states that revenue should be recognized when it is earned, which is when the goods or services are provided to the customer.

2. In a service business, providing the service is what earns the revenue. Therefore, revenue is considered earned when the service is performed, regardless of when payment is received.

3. This means that if a company performs a service