Adjusting entries are necessary so that asset,liability, revenue, and expense account balances are correctly recorded. True or False True False

True<br /><br />Adjusting entries are necessary to ensure that asset, liability, revenue, and expense account balances are accurately recorded in accordance with the accrual basis of accounting. These adjustments help reflect the true financial position and performance of a business by recognizing revenues and expenses in the period they occur, regardless of when cash transactions happen.