Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 20)
What are the fundamental purposes of adjusting entries?
To update the cash balance.
To match revenues with expenses.
To record the impact of transactions that have occurred but not yet recorded.
To make the trial balance balance.
Explanation
The core purpose of adjusting entries is to ensure revenue and expenses are recorded in the proper period, as well as account for events that affect the financials but have not been recorded.
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