Last … In order for an organization’s monetary statements to include these transactions, accrual-sort adjusting entries are needed. The entries made to update the financial records, are regarded as, adjusting entries. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. They can however be made at the end of a quarter, a month or even at the end of a day depending on the accounting requirement and the nature of business carried on by the company. Adjusting entries are made to ensure that: a. expense are recognized in the period in which they are incurred. Answer: B Objective: Learning Objective 1 Difficulty: Easy AACSB: Analytic. d. All of the above. It also adheres the accrual basis accounting and cash basis accounting and it must follow the … B) revenues are recorded in the period in which they are earned. Adjusting entries are made to ensure that: A) expense are recognized in the period in which they are incurred. Organizations usually make Adjusting Entries on the last day of an accounting period to ensure that the accounts are in line with the accrual method of accounting and the matching principle. Adjusting entries are made at the end of the accounting period before the financial statements to make sure the accounting records and financial statements are up-to-date. As per the accrual concept, a company should recognize income when it earns and not when it receives. d. all of the above. Question The Need for Adjusting Entries Adjusting entries are usually made at the end of an accounting period. 3-12 LO 1 The Need for Adjusting Entries Question Adjusting entries are made to ensure that: a. expenses are recognized in the period in which they are incurred. c. balance sheet and income statement accounts have correct balances at the end of an accounting period. (b) revenues are recorded in the period in which services are provided. The presentation of finacial statement should be true and fair. These are necessary entries to present a true and fair view of financial information. To ensure that financial statements reflect the revenues that have been earned and the expenses that were incurred during the accounting period, adjusting entries are made on the last of an accounting period. Adjusting entries must involve two or more accounts and one of those accounts will be a balance sheet account and the other account will be an income statement account. These entries produce an impact on at least a single income statement on the financial records and a single balance sheet. Chapter 3-14 SO 3 Explain the reasons for adjusting entries. Adjusting entries are made to ensure that: a. expenses are recognized in the period in which they are incurred. Adjusting entries are made to ensure that: A. expenses are recognized in the period in which they are incurred. b. revenues are recorded in the period in which the performance obligation is satisfied. C) deferrals. Adjusting entries are made to ensure that: O expenses are recognized in the period in which they are incurred. Task: prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. This means that all the entries and adjustments neccessary have been made in the account and it has been presented. Adjusting entries are made to ensure that: (a) expenses are recognized in the period in which they are incurred. c. balance sheet and income statement accounts have correct balances at … C. statement of financial position and income statement accounts have correct balances at the end of an accounting period. (b) revenues are recorded in the period in which ser- vices are performed. Adjusting entries are made to ensure that: (a) expenses are recognized in the period in which they are incurred. O balance sheet and income statement accounts have correct balances at the end of an accounting period. 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