Adjusting entries: Multiple Choice Adjust the balance of revenue and expense accounts to zero. Often include the Cash account. Usually are recorded at the beginning of the accounting period. Always involve at least one income statement account and one balance sheet account.

Question

Kymani Woodard

Business

6 March, 22:00

Adjusting entries: Multiple Choice Adjust the balance of revenue and expense accounts to zero. Often include the Cash account. Usually are recorded at the beginning of the accounting period. Always involve at least one income statement account and one balance sheet account.

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Daniela Cherry · Answer 1

Always involve at least one income statement account and one balance sheet account.

Explanation:

Adjusting entries are used to record events that happened during the current accounting period but weren't recorded earlier in the proper accounts. Accounting entries involve revenues and expenses, and at least one balance account (assets, liabilities and equity accounts). E. g. accounts receivable are adjusted to record bad debt expenses.