Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 3 - No. 18)
What is the main purpose of making adjustments to the ledger accounts at the end of an accounting period?
To calculate the company's tax liability.
To ensure that all transactions are recorded.
To apply the matching principle and accurately reflect the financial performance.
To reconcile the bank balance with the cash book.
Explanation
The main purpose is to apply the matching principle.
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