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Mench Pardlyde 23 Chapter without de to MC Questions. PowerPoint ACROSAT Tell me what you want to View Splendid Demo Une Timings Show Media Controls Splendid Off Splendid On Why are adjusting entries necessary? a. To correct errors in the accounts. b. To record transactions not previously recorded. c. To match revenues and assets. d. Some transactions span over more than one accounting period. I S2 Comments to add notes

Answer 1

Option C :- To match Revanues and Assets

The main purpose of adjusting entries is to update the accounts to conform with the accrual concept. At the end of the accounting period, some income and expenses may have not been recorded, taken up or updated; hence, there is a need to update the accounts.

If adjusting entries are not prepared, some income, expense, asset, and liability accounts may not reflect their true values when reported in the financial statements. For this reason, adjusting entries are necessary