Adjusting entries areA) not necessary if the accounting system is operating properly.B) usually required before financial statements are prepared.C) made whenever management desires to change an account balance.D) made to balance sheet accounts only.

Question

Adjusting entries areA)  not necessary if the accounting system is operating properly.B)  usually required before financial statements are prepared.C)  made whenever management desires to change an account balance.D)  made to balance sheet accounts only.

Zybrea Knight · Accepted Answer

Final Answer : B, Explanation :  Adjusting entries are usually required before financial statements are prepared in order to ensure that the financial statements reflect accurate and up-to-date information about the company's financial position and performance. They are necessary regardless of whether the accounting system is operating properly or not, and they may affect both income statement and balance sheet accounts. Management may initiate the need for adjusting entries, but they are not made simply to change an account balance.

Adjusting entries are

A) not necessary if the accounting system is operating properly.
B) usually required before financial statements are prepared.
C) made whenever management desires to change an account balance.
D) made to balance sheet accounts only.

Definitions

Learning Objectives

Learning Objectives

Related questions