Final answer:
The correct term for adjusting entries to reflect actual asset values or change in accounting principle is c) Corrections. These adjustments ensure accurate financial statements by addressing errors or omissions in initial accounting entries.
Step-by-step explanation:
Adjusting entries that are made to account for the differences between the actual and the recorded value of an asset, or to reflect a change in accounting principle, are referred to as corrections. These adjustments are essential in ensuring that the financial statements reflect the true and fair value of the company's assets and liabilities.
Most adjustments of this nature occur when initial accounting entries have been discovered to contain errors or omissions. For instance, if an asset was undervalued in the records due to an accounting error, a correction would be made to increase its value to the correct amount. On the other hand, accruals pertain to revenues earned or expenses incurred that have not yet been recorded, deferrals relate to revenues or expenses that are recorded but not yet earned or incurred, and amortizations involve the gradual reduction of an intangible asset's value over time.