What is the purpose of adjusting entries in accounting? A) To close the temporary accounts B) To update the financial records at the end of an accounting period C) To prepare the trial balance D) To record transactions that occurred in the following period

What is the purpose of adjusting entries in accounting? A) To close the temporary accounts B) To update the financial records at the end of an accounting period C) To prepare the trial balance D) To record transactions that occurred in the following period

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section16.5: Preparing A Post-closing Trial Balance

Problem 3AYU

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Question

What is the purpose of adjusting entries in accounting?

A) To close the temporary accounts
B) To update the financial records at the end of an accounting period
C) To prepare the trial balance
D) To record transactions that occurred in the following period

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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