A journal entry at the end of an accounting period to bring
an asset or liability account balance to its proper amount while also
updating the related expense or revenue account.
• Some assets are used up during their lifetime and
• The cost is allocated to expense over the span of several accounting
periods with adjusting entries.
• Adjusting entries are made at the end of the accounting periods
to make the financial statements accurate.
• One of the most common adjusting entries is Depreciation expense.
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