Adjusting journal entries impact both the income statement and the balance sheet.

Name: Adjusting journal entries impact both the income statement and the balance sheet.
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Question

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Adjusting journal entries are made in the accounting records to correct or update financial information. These adjustments can affect accounts that are reported on both the income statement (such as revenues and expenses) and the balance sheet (such as assets, liabilities, and equity), thereby impacting both financial statements.

Adjusting Journal Entries Impact Both the Income Statement and the Balance