5 Questions
What is the purpose of adjusting entries in accounting?
To change account balances to the correct balance for accurate financial reporting
When is an expense considered to be incurred in accounting?
When the service is received
What is the purpose of a preliminary trial balance (unadjusted trial balance)?
To check the accuracy of posting and prove the equality of debits and credits
What is the Periodicity Principle in accounting?
An important concept that helps organize financial data into manageable periods of time
When does the calendar year end in accounting?
December 31
Test your knowledge of accounting principles with this quiz on adjusting entries and the periodicity principle. Challenge yourself to understand the importance of accurate financial reporting and the steps involved in the accounting cycle.
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