How do the adjusting entries differ from other journal entries?
A) Adjusting entries always include debits or credits to at least one income statement account and at least one balance sheet account.
B) Adjusting entries are made only at the end of the period.
C) Adjusting entries never affect cash.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Adjusting entries are unique because they are made at the end of an accounting period to update account balances before financial statements are prepared. They always involve at least one income statement account and one balance sheet account and do not directly affect cash, as they are adjustments for revenues earned or expenses incurred that have not yet been recorded.

How Do the Adjusting Entries Differ from Other Journal Entries