An adjusting entry normally affects
A)balance sheet accounts only
B)income statement accounts only
C)an income statement account and a balance sheet account
D)balance sheet accounts or income statement accounts only

Question

Quizplus · Accepted Answer

An adjusting entry typically affects both an income statement account and a balance sheet account. This is because adjusting entries are made at the end of an accounting period to update accounts that have not yet been recorded. These adjustments often include accruals or deferrals of revenue or expenses, which impact both income statement accounts (revenue and expenses) and balance sheet accounts (assets and liabilities).

An Adjusting Entry Normally Affects