Business Studies, asked by debanjan8529, 1 year ago

Why is it neccessary to pass adjustment entries in financial statements?

Answers

Answered by sriteja2780
2

Explanation:

Key Takeaway. Adjusting entries are necessary to update all account balances before financial statements can be prepared. These adjustments are not the result of physical events or transactions but are rather caused by the passage of time or small changes in account balances.

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