BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At the beginning of the year
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At the end of the year
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During the year
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All of these
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Detailed explanation-1: -Adjusting entries are made at the end of the accounting period to make your financial statements more accurately reflect your income and expenses, usually-but not always-on an accrual basis. This can be at the end of the month or the end of the year.
Detailed explanation-2: -An adjusting journal entry is usually made at the end of an accounting period to recognize an income or expense in the period that it is incurred. Adjusting journal entries are a feature of accrual accounting as a result of revenue recognition and matching principles.
Detailed explanation-3: -Adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared. After adjusted entries are made in your accounting journals, they are posted to the general ledger in the same way as any other accounting journal entry.