Question

Adjusting entries: affect only cash flow statement accounts affect only balance sheet accounts affect only income statement accounts affect both income statement and balance sheet accounts affect only equity accounts

Answer 1

Answer:

affect both income statement and balance sheet accounts

Explanation:

Adjusting entry is commonly said to affects one income statement account which is the revenue or expense account. It also affect one balance sheet account which can be an asset or liability account. It usually result in a better revenues and expenses matching for the period.

They are refered to as the entry usually made at the end of at the end of the period to a given or assigned revenues to the period in which they were earned and expense to the period of being incurred.

Adjustments had five major categories which are accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation. It is widely known that for every adjusting entry, it must affects at least one income statement account and one balance sheet account.