Adjusting entries always affect both the income statement and the balance sheet.

Name: Adjusting entries always affect both the income statement and the balance sheet.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Adjusting entries are made in order to match the revenue and expenses of the company with the appropriate accounting period. This means that they will impact both the income statement, which reports the revenues and expenses for a period, and the balance sheet, which reports the company's financial position at a point in time.

Adjusting Entries Always Affect Both the Income Statement and the Balance