Which of the following is NOT a rule for recording adjusting journal entries?

The assertion that adjusting journal entries must be recorded after the fiscal year is inaccurate. In practice, adjusting entries are an essential part of the accounting cycle and are typically recorded before the financial statements are prepared for any given fiscal period. This timing is critical to ensure that revenues and expenses are recognized in the appropriate accounting period, adhering to the accrual basis of accounting.

Adjusting entries are made to reflect items that were not fully accounted for during the accounting period. They serve to correct any accrued or deferred items that may impact both the income statement and the balance sheet. For example, an adjusting entry could account for accrued expenses or revenue that has been earned but not yet recorded.

By ensuring that these entries are made before the financial statements are finalized, the accuracy and integrity of the financial reporting process are maintained, ultimately providing stakeholders with a true and fair view of the company's financial position.