Adjusting journal entries are....

Question

Journal entries in order to adjust the nominal accounts in the general ledger.


Journal entries at the end of the business’ financial year.


Ledger accounts balances drawn from the trial balance adjusted to reflect fair presentation of profits in the statement of profit or loss.


All of the above

Answer 1

orrect! Adjusting journal entries are journal entries made at the end of an accounting period in order to adjust the nominal accounts in the general ledger and ensure that the financial statements reflect the true financial position of the business. This may include allocating expenses, recognizing revenues, adjusting for depreciation, and recording any other necessary adjustments. Adjusting journal entries are necessary in order to present a fair and accurate picture of the business's financial performance.