It is correct that each balance day adjustment:
A) affects either the income statement or the balance sheet.
B) has at least one effect on the income statement and one effect on the balance sheet.
C) only affects the income statement.
D) always has an effect on the bank account.

Question

Quizplus · Accepted Answer

Balance day adjustments always have at least one effect on the income statement and one effect on the balance sheet. They are used to adjust accounts for changes in value that have occurred but have not yet been recorded in the accounts. For example, depreciation is a balance day adjustment that has an effect on both the income statement (reducing profits) and the balance sheet (reducing the value of the asset being depreciated).

It Is Correct That Each Balance Day Adjustment