Asked by Ethan Berumen on May 26, 2024
Verified
An adjusting entry is required whenever all economic events that have occurred are not already reflected in the accounts.
Adjusting Entry
Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.
- Understand the necessity and types of adjusting entries in accounting.
Verified Answer
YM
ysabella munizMay 27, 2024
Final Answer :
True
Explanation :
Adjusting entries are necessary to update the accounts to reflect unrecorded economic events or transactions. Without adjusting entries, the financial statements may not accurately represent the current financial status of the entity.
Learning Objectives
- Understand the necessity and types of adjusting entries in accounting.
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