Ask Question
21 June, 22:49

Every adjustment entry affects:

at least one permanent account and one temporary account.

only a permanent account.

only a temporary account.

only a revenue account

+4
Answers (1)
  1. 21 June, 23:18
    0
    one permanent account and one temporary account.

    Explanation:

    The adjustment is made to a permanent account, using a temporary account

    For example:

    insurance expense debit (T)

    prepaid insurance credit (P)

    to record expired insurance for the period

    depreciation expense debit (T)

    accumulated depreciation equipment credit (P)

    to record depreciation for the period

    unearned revenue debit (P)

    service fee revenue credot (T)

    to record accrued revenue

    supplies expense debit (T)

    supplies credit (P)

    In this example, all have in common a permanent account (Asset, Liability or equity)

    and a temporary account (expense or revenue)

    The goal of the adjustment entries is to represent the past of time.

    We will have accrued expenses or accrued revenues.

    Remember that, temporary account are those which the accoutning closes at the end of the period. (revenue and expenses)

    While permanent account stay, assets, liability and equity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Every adjustment entry affects: at least one permanent account and one temporary account. only a permanent account. only a temporary ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers