Adjusting entries are: Group of answer choices the same as correcting entries. needed to ensure that the matching principle is followed. optional. rarely needed.
Question
Adjusting entries are: Group of answer choices
the same as correcting entries.
needed to ensure that the matching principle is followed.
optional.
rarely needed.
Solution
Adjusting entries:
-
Are not the same as correcting entries. Correcting entries are made to rectify errors made in the accounting records, while adjusting entries are made at the end of an accounting period to update account balances before financial statements are prepared.
-
Are needed to ensure that the matching principle is followed. The matching principle in accounting states that expenses should be matched with the revenues they helped to generate in the same accounting period. Adjusting entries help to ensure that revenues and expenses are recorded in the correct period.
-
Are not optional. They are a necessary part of the accounting cycle to ensure that financial statements are accurate and complete.
-
Are not rarely needed. They are a regular part of the accounting cycle and are needed at the end of each accounting period.
Therefore, the correct answer is: Adjusting entries are needed to ensure that the matching principle is followed.
Similar Questions
Not all of the adjusting entries need reversalGroup of answer choicesTrueFalse
A work sheet includes columns forGroup of answer choicesadjusting entriesclosing entriesreversing entriesadjusting and closing entries
Which one of the following is not a justification for adjusting entries?Group of answer choicesAdjusting entries are necessary to ensure that the revenue recognition principle is followed.Adjusting entries are necessary to ensure that the matching principle is followed.Adjusting entries are necessary to enable financial statements to conform with GAAP.Adjusting entries are necessary to bring the general ledger accounts in line with the budget.
Example case: Wrong answer All entries have different values: Wrong answer Entries close to the borders have a value of 0: Wrong answer Various entries: Wrong answer
When entering criteria in the criteria range, criteria that conjunct with either/or should be entered on _________.Group of answer choicesDifferent rowsSame rowSame columnAll of the answers are correct
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.