Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 13)
What is the main purpose of an adjusting entry?
To correct errors.
To update the cash balance.
To match revenues and expenses.
To ensure accounting records are up to date.
Explanation
Adjusting entries are made to accurately reflect the financial performance and position of a company, primarily by matching revenues with expenses in the correct period.
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