A common characteristic of an adjusting entry is that it will include one Profit and Loss statement account and one Balance Sheet account.

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Adjusting entries are made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. They typically involve one income statement account (revenue or expense) and one balance sheet account (asset or liability) to adjust the accounts to their correct balances.

A Common Characteristic of an Adjusting Entry Is That It