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adjusting entries practice problems with answers pdf
Adjusting entries practice problems with answers pdf: Adjusting entries are step 5 of the accounting cycle and are an essential element in accrual accounting. Adjusting entries let you adjust the number of expenses and income to reflect your financial situation better.
Once you have completed the initial balance of your trial, You can then create and publish your adjustments, then adjust the trial balance after your journals entries are posted into your ledger general. The reason for adjustments to entries is to make sure that the statements of your finances be accurate.
If adjustments aren’t included, the statements like the balance sheet profits and losses statement ( income statement) and cash flow statement are not accurate.