Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

Question

Quizplus · Accepted Answer

Adjusting entries often affect one balance sheet account and one income statement account, but correcting entries may only affect accounts within the same type of statement (either balance sheet or income statement) depending on the error being corrected.

Both Correcting Entries and Adjusting Entries Always Affect at Least