Adjusting Entries Are Made at the End of the Period

question 67

Multiple Choice

Adjusting entries are made at the end of the period because of the need to

• A)adjust the balance in the cash account for the effects of all daily transactions with customers and creditors.
• B)assure that all revenues and expenses are recognized in the period in which they are earned or incurred.
• C)assure that debits are equal to credits prior to preparing the trial balance.
• D)prepare revenue and expense accounts for recording transactions in the next accounting period by bringing the balances to zero.

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