Accrual Accounting Adjusting Accounts

Accrual accounting involves adjusting accounts.  They are necessary because at the end of an accounting period, the balance sheet must list all assets and liabilities (month end).  Therefore, the income statement must list all revenues and expenses pertaining to the period ending on that day, month, week, month, quarter, etc.  Some transactions will go past the cutoff point, therefore some accounts will need adjustment.
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