Final answer:
Accrual adjusting entries are made at the end of the month to ensure that revenues and expenses are recorded in the correct accounting period.
Step-by-step explanation:
Accrual adjusting entries are made at the end of the month by a company that prepares monthly financial statements to ensure that revenues and expenses are recorded in the correct accounting period. This is based on the accrual accounting principle, which recognizes transactions when they occur, rather than when cash is received or paid. These adjustments help provide a more accurate representation of the company's financial position and performance.