Definition of Adjusting Entries. only balance sheet accounts. only income statement accounts. only income statement accounts. Adjusting entries are usually made on the last day of an accounting period (year, quarter, month) so that a company's financial statements comply with the accrual method of accounting. B. However, in some branches of accounting (especially auditing), the term adjusting entries could refer to any entry that aims to adjust incorrect account balances. THREE ADJUSTING ENTRY RULES. Adjusting entries always include one balance sheet and one income statement account r. 23 23. In other words, the adjusting entries are needed so that a company's: An income statement account C. All of the other answers are correct D. Retained… < The effects of adjusting journal entries are automatically carried through to the trial balance and financial statements, making last-minute adjustments easier to make. at least one income statement account and one balance sheet account (my answer) Answer Save. Adjusting entries A. always include the cash account B. usually are recorded on the first day of the accounting period C. usually change at least one income statement account balance and one balance sheet account balance D. are prepared after closing entries 2. The adjusting entries for a given accounting period are entered in the general journal and posted to the appropriate ledger accounts (note: these are the same ledger accounts used to post your other journal entries). Lv 7. 1 Answer. and income statement account (Interest Expense, Insurance Expense, Service Revenues, etc.). Cash B. What are adjusting entries? Adjustments are only made if cash has been received or paid during the period. The purpose of adjusting entries: According to accrual concept of accounting, revenue is recognized in the period in which it is earned and expenses are recognized in the period in which they are incurred.Some business transactions affect the revenue and expenses of more than one accounting period. Adjusting entries will never include cash. All adjusting entries include at least a nominal account and a real account. Adjusting entries always include: a. the cash account b. only income statement accounts c. only balance sheet accounts d. at least one income statement account and one balance sheet account Note: "Adjusting entries" refer to the 6 entries mentioned above. 9 … < Data can be imported and exported to other applications. Entries are made with the matching principle to match revenue and expenses in the period in which they occur. JKRB. Get 1:1 … For example, a service providing company may receive service fee from its clients for more … Solution for Adjusting entries always involve A. Adjusting entries always include. Adjusting entries always involve a balance sheet account (Interest Payable, Prepaid Insurance, Accounts Receivable, etc.) only balance sheet accounts. at least one income statement account and one balance sheet account. The amount to be used for the appropriate adjusting entry is 1. Adjusting entries always include. (Points: 2) If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) 1. revenue 2. accrual 3. dividend 4. deferral Save Answer 11. Relevance. the cash account. $3,700 3. Adjusting entries, also called adjusting journal entries, are journal entries made at the end of a period to correct accounts before the financial statements are prepared. $11,900 4. < Tick marks and review notes can be entered directly into computerized files. 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