End-of-period-adjustments in accounting are journal entries made to the accounts of a business prior to the preparation and distribution of the financial statements for a given accounting period. End-of-period adjustments ensure that the these financial statements reflect the true financial position and performance of a business by allocating to the appropriate period the income earned and expenses incurred. End-of-period adjustments are also known as year-end-adjustments, adjusting-journal-entries and balance-day-adjustments. End-of-period-adjustments apply the matching principle of accounting which include accruals, deferrals and asset value adjustments.
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Scooped by
Peter John Baskerville
onto Basic Accounting Concepts August 13, 2011 4:19 AM
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