Each adjustment affects
A) the income statement.
B) the balance sheet.
C) the cash account.
D) both A and B are correct.

Name: Each adjustment affects A) the income statement. B) the balance sheet. C) the cash account. D) both A and B are correct.
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Question

Quizplus · Accepted Answer

Adjustments typically affect both the income statement (by adjusting revenues and expenses) and the balance sheet (by adjusting assets, liabilities, and equity). Adjustments may not necessarily have a direct impact on the cash account.

Each Adjustment Affects