Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

Question

Quizplus · Accepted Answer

Adjusting entries always affect at least one income statement account and one balance sheet account, but correcting entries may affect only balance sheet accounts, only income statement accounts, or both, depending on the nature of the error being corrected.

Both Correcting Entries and Adjusting Entries Always Affect at Least