Final answer:
Correcting or adjusting entries are made to books according to GAAP or Accrual Based Accounting at the end of an accounting period, to ensure accurate financial statements.
Step-by-step explanation:
Correcting or adjusting entries are made to books according to GAAP (Generally Accepted Accounting Principles) or Accrual Based Accounting at the end of an accounting period, such as a month, quarter, or year.
These entries are necessary to ensure that financial statements accurately reflect the financial position and performance of a company.
For example, if an expense is incurred in one accounting period but not yet paid, an adjusting entry would be made to recognize the expense and create a liability on the books.