Each adjusting entry affects at least one income statement account and at least one statement of financial position account.

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to record transactions that have occurred but have not yet been recorded in the accounts. These entries typically affect at least one income statement account and at least one statement of financial position account, as they reflect the recognition of revenue and expenses that have been incurred but have not yet been recorded. Therefore, the statement is true.

Each Adjusting Entry Affects at Least One Income Statement Account