Asked by Joseph Stewart on May 20, 2024
Verified
Adjusting entries result in a better matching of revenues and expenses for the period.
Adjusting Entries
Journal entries made in accounting to adjust income and expense accounts so they reflect the true financial position of a business.
Expenses
Costs incurred in the process of generating revenues, representing the consumption of resources such as raw materials, labor, and overhead.
- Realize the crucial importance of entries adjustment in the development of financial accounts.
- Master the basic tenets of acknowledging revenues and associating costs according to the matching principle.
Verified Answer
LR
Lizzie RojasMay 23, 2024
Final Answer :
True
Explanation :
Adjusting entries are made at the end of an accounting period to update accounts for transactions that have occurred but have not yet been recorded. These entries help to properly match expenses with revenues for the period, resulting in a more accurate financial statement presentation.
Learning Objectives
- Realize the crucial importance of entries adjustment in the development of financial accounts.
- Master the basic tenets of acknowledging revenues and associating costs according to the matching principle.
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