Correcting entries are used to do what in the accounting records?

• A. Entries made to fix errors in the journal or ledger without erasing
• B. Record revenue from customers
• C. Close the books
• D. Adjust budgets

Answer: (A)

Correcting entries fix mistakes that slipped into the books after postings. They are new journal entries that reverse or adjust the wrong amounts or misclassified accounts, so the ledger reflects the true balances while preserving an audit trail. For example, if a received payment was recorded in the wrong account, a correcting entry would move that amount to the proper account (debit the correct account and credit the incorrect one) to straighten the records without erasing the original entry.

This is different from recording revenue from customers, which is a normal operating entry; closing the books, which happens at period end with closing entries; or adjusting budgets, which is part of planning rather than correcting actual postings.