Question

Adjusting entries are primarily needed for: a)multiple choice cash-basis accounting.

b)current value accounting. c)accrual-basis accounting.
d)manual accounting systems.

Answer 1

Adjusting entries are primarily needed for accrual-basis accounting to ensure accurate financial statements.

Step-by-step explanation:

Adjusting entries are primarily needed for accrual-basis accounting. Accrual accounting recognizes revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. Adjusting entries ensure that the financial statements accurately reflect the financial position of the business by adjusting the recorded amounts for revenues and expenses that have not yet been recorded.