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Why are adjustments in the profit and loss account necessary?

Accounts - Principles of Accounts
JAMB 1995

Why are adjustments in the profit and loss account necessary?
  • A. To cover some expenses of the following year
  • B. To ascertain the actual expenses incurred and income earned during the year
  • C. To show the provision made during the year
  • D. To show the total expenses paid and income received during the year
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Correct Answer: Option B
Explanation
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free