Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions: 21

Answer

(a) An adjusting entry affect to one balance sheet and/ or one income statement. Salaries Expenses is debited.

Work Step by Step

This is because the adjusting entry is made to arrive at the correct income of that particular year. Adjusting entries are required every time a company prepares financial statements. Thus every adjusting entry will include one income statement account and one balance sheet account.
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