Adjusting entries are?

Question

the same as correcting entries

needed to bring accounts up to date and match revenue and expense

optional under generally accepted accounting principles

rarely needed in large companies

Answer 1

needed to bring accounts up to date and match revenue and expense

Adjusting entries are accounting journal entries that convert a company's accounting records to the accrual basis of accounting. An adjusting journal entry is typically made just prior to issuing a company's financial statements.