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Adjusting entries are required at the end of each fiscal period to align the revenues and expenses to the right period in accord with the matching principle in accounting.
Revenue adjusting journal entry. An adjusting journal entry is usually made at the end of an accounting period to recognize an income or expense in the period that it is incurred. This guide to adjusting entries covers deferred revenue deferred expenses accrued expenses accrued revenues and other adjusting journal entries examples. Adjusting journal entries are a feature of accrual accounting as a result of revenue recognition and matching principles.
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