Answer the Following Two Questions

question 50

Essay

Answer the following two questions:
What are adjusting entries and why are they necessary?
What are closing entries and why are they necessary?

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Definitions:

Processing Department

This refers to a division within a business that handles the processing of materials or information.

Operations

The day-to-day activities necessary for running a company, focused on creating and delivering products or services.

Equivalent Units

A measure used in accounting to express the amount of work done by manufacturers in terms of fully completed output units.

Materials

Items and substances used in the production of goods, including raw materials, components, and parts.