Asked by Karla Rosas on Jun 16, 2024
Verified
Prior to recording adjusting entries at the end of an accounting period,some accounts may not show correct balances even though all transactions were properly recorded.
Adjusting Entries
Journal records created during the final part of an accounting period for the purpose of attributing revenues and expenses to the timeframe in which they actually took place.
Correct Balances
Accurate financial figures in accounting records that match the real-world values of assets, liabilities, and equity.
Accounting Period
A specific time frame for which financial records are tracked and reported, typically a year or quarter.
- Acquire insight into the rationale and goal of incorporating adjusting entries in financial reporting.
- Recognize the effect of adjusting entries on financial statement accounts.
Verified Answer
DF
daisy fuentesJun 18, 2024
Final Answer :
True
Explanation :
Adjusting entries are necessary to ensure that all accounts are accurately reflecting their correct balances. Without these entries, some accounts may still have incorrect balances, even if all transactions were correctly recorded.
Learning Objectives
- Acquire insight into the rationale and goal of incorporating adjusting entries in financial reporting.
- Recognize the effect of adjusting entries on financial statement accounts.