Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 22)
Why are adjusting entries necessary at the end of an accounting period?
To make sure all sales have been recorded.
To allocate revenues and expenses to the proper accounting periods.
To correct errors made in other entries.
To update the cash balance
Explanation
Adjusting entries make sure that revenues and expenses are recorded in the correct accounting periods and they correct errors.
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