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Adjusting journal
Manage episode 330970816 series 3342280
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Welcome Bookkeeping Centrum Family, to another episode of your favorite weekly podcast.
Adjusting journal entries are used to adjust the financial statements and bring them into compliance with relevant accounting standards, such as GAAP or IFRS. This is the fourth step in the accounting cycle. Adjusting entries are most commonly used in accordance with the matching principle to match revenue and expenses in the period in which they occur. This activity has to be performed by accountants on a regular bases, to be sure that the income and expenses are upgraded to the information of the actual cycle.
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