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 capital stock account

Question

Quizplus · Accepted Answer

Adjusting entries are made to ensure that expenses and revenues are recorded in the period in which they were incurred or earned. These entries affect at least one income statement account (such as an expense or revenue account) and one balance sheet account (such as an asset, liability, or equity account). Therefore, choice A is the correct answer.

Adjusting Entries Affect at Least One