The income statement is the only statement affected when an adjustment is made.

Name: The income statement is the only statement affected when an adjustment is made.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Adjustments can affect both the income statement and the balance sheet. For example, adjusting for an expense that was not recorded in the previous period will decrease net income (income statement) and increase accounts payable (balance sheet).

The Income Statement Is the Only Statement Affected When an Adjustment