Adjusting entries affect at least one
A) income statement account and one balance sheet account
B) revenue and the dividends account
C) asset and one stockholders' equity account
D) revenue and one stockholders' equity account

Question

Quizplus · Accepted Answer

Adjusting entries are made at the end of an accounting period to update accounts that have not yet been recorded in the general ledger. These entries affect at least one income statement account and one balance sheet account. For example, an accrual of revenue that has been earned but not yet received will affect both the revenue account (income statement) and accounts receivable (balance sheet).

Adjusting Entries Affect at Least One