Answer:
Option C.
Explanation:
Adjusting entries are used in the recording of transactions which have occurred but have not yet been appropriately recorded in accordance with the accrual method of accounting. They are recorded in a company's general ledger at the end of an accounting period to abide by the matching and revenue recognition principles and the most common types of adjusting journal entries are accruals, deferrals, and estimates.
The objective of making use of adjusting entries is to convert cash transactions into the accrual accounting method. An adjusting entry will involve an income statement account along with a balance sheet account.
