Adjusting entries always include a debit or credit to Cash.

Name: Adjusting entries always include a debit or credit to Cash.
Brand: Quizplus
Rating: 4.9 (28 reviews)

Question

Quizplus · Accepted Answer

Adjusting entries may or may not involve a debit or credit to Cash. The purpose of adjusting entries is to update accounts that were not properly recorded or need to be adjusted at the end of an accounting period. These adjustments may involve expenses, revenues, assets, or liabilities, but not necessarily Cash.

Adjusting Entries Always Include a Debit or Credit to Cash