Home » Past Questions » Accounts » Why are adjustments in the profit and loss account necessary?

Why are adjustments in the profit and loss account necessary?


Question

Why are adjustments in the profit and loss account necessary?

Options

A) To cover some expenses of the following year

B) To show the provisions made during the year

C) To show the total expenses paid and income received during the year

D) To ascertain the actual expenses incurred and income earned during the year

The correct answer is D.


More Past Questions:


Discussion