Question

Why are adjustments made to the accounting records at the end of the period? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) To ensure assets and liabilities are reported at appropriate amounts checked To ensure the related revenues and expenses are reported in the proper period checked To better match the recording of revenue with the receipt of cash unchecked To better match the recording of expenses with the payments of cash unchecked To record the recurring daily transactions unchecked

Answer 1

Answer:

To ensure assets and liabilities are reported at appropriate amounts.

To ensure the related revenues and expenses are reported in the proper period.

Explanation:

Adjusting entries at the end of the period are basically made, to comply with the requirements of the accrual principal.

Under accrual principal the financial statements represent the true and fair view of the transactions and conditions of the company.

It basically records all the revenues and expenses at the time when they are incurred and not at the time when they are paid in cash, or cash is received.

As and when the transaction incurs, or to the period it relates it shall be disclosed.

Therefore, each balance sheet item is disclosed and reported at the appropriate amount. And the all the revenues and expenses related to the period are provided for.