Why are adjustments in the profit and loss account necessary?

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
Correct Answer: Option B
Explanation
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