Final answer:
Adjusting entries are recorded at the end of an accounting period to ensure that the financial statements accurately reflect the company's financial position and performance, in accordance with the revenue recognition and matching principles.
Step-by-step explanation:
The main answer to your question about when adjusting entries are recorded in an accounting period is B. at the end of the accounting period. Adjusting entries are made in the accounting system to record revenues and expenses in the period in which they occur, not necessarily when cash is received or paid.Adjusting entries ensure that the revenue recognition and matching principles are followed. The revenue recognition principle states that revenue should be recognized in the period it is earned, regardless of when the cash is received. The matching principle dictates that expenses should be matched to the revenue they help generate in the same period. As such, these entries are necessary to align the books with these principles.In conclusion, adjusting entries are a crucial part of the financial statement preparation process and are typically recorded at the end of the accounting period to ensure the financial statements accurately reflect the economic events of the period.