Each adjusting entry will affect a balance sheet account.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet, which is one of the three principal financial statements; these accounts include assets, liabilities, and shareholders' equity.

Acquire knowledge about the importance of adjusting entries in the precise reflection of a company's financial status and performance metrics.
Attain insight into the reasons and results of selective adjusting entries, such as those for unearned revenues, accrued expenses, and depreciation.

Verified Answer

hitesh sharmaMay 26, 2024

Final Answer :

True

Explanation :

This is because adjusting entries are used to update balance sheet accounts that may not have been properly recorded during the accounting period. These adjustments can affect assets, liabilities, and equity accounts on the balance sheet.

Learning Objectives

Acquire knowledge about the importance of adjusting entries in the precise reflection of a company's financial status and performance metrics.
Attain insight into the reasons and results of selective adjusting entries, such as those for unearned revenues, accrued expenses, and depreciation.

Each adjusting entry will affect a balance sheet account.

Definitions

Learning Objectives

Learning Objectives

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