Adjusting entries:
A)Affect only income statement accounts.
B)Affect only balance sheet accounts.
C)Affect both income statement and balance sheet accounts.
D)Affect cash accounts.
E)Affect only equity accounts.

Question

Quizplus · Accepted Answer

Adjusting entries affect both income statement and balance sheet accounts as they are made at the end of the accounting period to update accounts to their proper balances. This ensures that financial statements are accurate and complete.

Adjusting Entries