Answered: Which of the following statements is…

Business

Accounting

Which of the following statements is correct about an adjusting entry?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 15MC: Which of these transactions requires an adjusting entry (debit) to Unearned Revenue? A. revenue...

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Question

Which of the following statements is correct about an adjusting entry? O a. It is prepared to assign revenues to the periods in which they are earned. ObIt affects only the statement of cash flows. OcIt is prepared to update only the asset accounts . Od is a compound entry

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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