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Adjusting entries are needed so that the income statement and balance sheet show numbers that are:
AUnavailable
BUp to date
CUnder stated
DUnusually low
Answer & Solution
Correct answer: B. Up to date
1. An unadjusted trial balance can be incomplete.
2. Reports built on it would mislead their readers.
3. So the numbers must be up to date.
_Source: OpenStax Principles of Financial Accounting, Chapter 4, The Adjustment Process._
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