Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 6 - No. 46)
What is the main purpose of adjusting entries?
To correct errors in the accounting records.
To update accounts for unrecorded items.
To calculate the company's assets.
To summarize the financial data for the period.
Explanation
Adjusting entries update the accounts for events that haven't been previously recorded, such as depreciation or accrued expenses.
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