Every adjustment involves at least one income statement and one balance sheet account.

Question

Quizplus · Accepted Answer

Adjustments are made to ensure that the financial statements properly reflect the financial position and performance of a company. In order to do this, at least one income statement and one balance sheet account must be adjusted. Income statement accounts are adjusted to reflect the appropriate period in which expenses and revenues occurred, while balance sheet accounts are adjusted to accurately reflect the current status of assets, liabilities, and equity.

Every Adjustment Involves at Least One Income Statement and One