Adjusting Entries in Accounting

To adjust only the balance sheet accounts

To close all accounts at the end of the accounting period

To allocate profits to shareholders

To update accounts and recognize revenues and expenses on an accrual basis (correct)

Only income statement

Cash flow statement

Both balance sheet and income statement (correct)

Only balance sheet

Maintain account balances without change

Update and correct account balances at the end of the accounting period (correct)

Close the accounts for the next accounting period

Allocate funds for future investments

<p>Allocate revenue and expenses between current and future periods</p> Signup and view all the answers

<p>To set a proper classification of real and nominal accounts for sound and reliable decision-making</p> Signup and view all the answers