Question

The purpose of adjustments is ___

• A. to assign appropriate portion of revenue and expenses to the appropriate accounting period.
• B. to make sure that revenue is recognised in the period in which it is earned and expenses are recognised in the period in which they are incurred.
• C. to update the accounts to confirm with the accrual concept.
• D. All of the above

Answer 1

The correct option is D

All of the above

All of the above are the purpose of doing adjustements in financial statements.