Adjusting entries affect
A)neither an income statement account nor a balance sheet account
B)an income statement account and a balance sheet account
C)income statement accounts only
D)balance sheet accounts only
E)a cash account

Question

Quizplus · Accepted Answer

Adjusting entries affect both an income statement account (such as revenue or expense accounts) and a balance sheet account (such as assets or liabilities). These entries are necessary to ensure that the financial statements accurately reflect the company's financial position and performance for the period.

Adjusting Entries Affect