On the statement of financial position, an adjunct account reduces either an asset, a liability, or an equity account.

Name: On the statement of financial position, an adjunct account reduces either an asset, a liability, or an equity account.
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An adjunct account is used to increase the value of its related account, not reduce it. It is typically associated with assets, such as increasing the value of a bond through a premium on bonds payable account.

On the Statement of Financial Position, an Adjunct Account Reduces