Adjusting entries are used to update income statement accounts and statement of financial position accounts.

Name: Adjusting entries are used to update income statement accounts and statement of financial position accounts.
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Adjusting entries are used at the end of an accounting period to update income statement accounts (such as accruals or deferrals of revenue and expenses) and statement of financial position accounts (such as depreciation of fixed assets or recognition of bad debts).

Adjusting Entries Are Used to Update Income Statement Accounts and Statement