alleryStart learning →Adjusting entries at the end of a period aim to
AReduce the tax payable by the firm
BRemove all credit balances in books
CIncrease the closing stock value
DMatch income and cost to the period
Answer & Solution
Correct answer: D. Match income and cost to the period
Adjusting entries allocate income and expenditure to the period in which they actually occurred.
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Related questions
Net income is also calledCharging depreciation on fixed assets has what effect on net profit?Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned Investment interest of Rs 12,000 a year is received for nine months only. Accrued income aMachine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets arePurchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales are