Question

Adjusting entries are recorded (select all that apply) A. to ensure revenues and expenses are recorded in the correct period. B. to follow the revenue recognition principle. C. to make sure the financial statement results match the budget set by management. D. in accordance with accrual accounting.

Answer 1

Adjusting entries are recorded in accordance with accrual accounting to ensure that revenues and expenses are recorded in the correct period, following the revenue recognition principle.

Step-by-step explanation:

Adjusting entries are recorded in accordance with accrual accounting. These entries are made at the end of an accounting period to ensure that revenues and expenses are recorded in the correct period, following the revenue recognition principle. They help to match revenues and expenses with the period in which they occurred, even if cash hasn't been exchanged yet.