What are journal entries recorded to update general ledger accounts at the end of a fiscal period called?

Adjusting entries are recorded to update general ledger accounts at the end of a fiscal period to ensure that the financial statements reflect the correct amounts. These entries are necessary to adhere to the accrual basis of accounting, which requires that revenues and expenses be recognized when they are earned or incurred, regardless of when cash is received or paid.

At the end of the accounting period, various transactions may not have been recorded or may need to be corrected to match actual performance accurately. For instance, accrued expenses, unearned revenues, and depreciation are typical scenarios where adjusting entries are applied. These entries help to align the financial statements with the economic realities of the business.

Other types of entries, such as closing entries, serve a different purpose by zeroing out temporary accounts in preparation for the new fiscal period. Permanent entries are not a formal term in accounting; instead, they usually refer to the entries that affect the balance sheet accounts that remain open across periods. Periodic entries are less commonly defined and may refer to various adjustments or entries made periodically but do not specifically indicate the necessary end-of-period updates to align with accounting standards.