An adjusting entry

A) affects two balance sheet accounts.
B) affects two income statement accounts.
C) affects a balance sheet account and an income statement account.
D) is always a compound entry.

Adjusting Entry

An accounting entry made to update the accounts to reflect accurate and up-to-date information before financial statements are prepared.

Balance Sheet

It's a record that shows a firm's holdings, obligations, and the equity of its shareholders at a given time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, culminating in net income or loss.