The effect of an adjustment on the financial statements is usually to:
A)make the balance sheet balance.
B)increase net income.
C)increase the accuracy of both the balance sheet and income statement.
D)match revenues and assets.

Question

Quizplus · Accepted Answer

Adjustments are made to ensure that both the balance sheet and income statement accurately reflect the financial position and performance of a company, often by recognizing revenues and expenses in the correct accounting period.

The Effect of an Adjustment on the Financial Statements Is