Which of the following statements regarding the role of cash in adjusting entries is true? Expert Answer . 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. at least one income statement account and one balance sheet account (my answer) Answer Save. Get 1:1 … only balance sheet accounts. Solution for Adjusting entries always involve A. < The effects of adjusting journal entries are automatically carried through to the trial balance and financial statements, making last-minute adjustments easier to make. Definition of Adjusting Entries. $3,700 3. An income statement account C. All of the other answers are correct D. Retained… A. < Data can be imported and exported to other applications. Adjusting entries always include. at least one income statement account and one balance sheet account. For example, a service providing company may receive service fee from its clients for more … 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. This is the fourth step in the accounting cycle. JKRB. Adjustments are only made if cash has been received or paid during the period. only balance sheet accounts. < Tick marks and review notes can be entered directly into computerized files. Lv 7. What are adjusting entries? $5,700 2. However, in some branches of accounting (especially auditing), the term adjusting entries could refer to any entry that aims to adjust incorrect account balances. Relevance. the cash account. 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. Adjusting entries always include one balance sheet and one income statement account r. 23 23. Adjusting entries always involve a balance sheet account (Interest Payable, Prepaid Insurance, Accounts Receivable, etc.) 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). the cash account. Adjusting entries will never include cash. $6,900 Save Answer 10. Cash B. only income statement accounts. (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. Adjusting entries always include. THREE ADJUSTING ENTRY RULES. 1 Answer. 1. B. All adjusting entries include at least a nominal account and a real account. 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. and income statement account (Interest Expense, Insurance Expense, Service Revenues, etc.). The amount to be used for the appropriate adjusting entry is 1. 9 … In other words, the adjusting entries are needed so that a company's: Note: "Adjusting entries" refer to the 6 entries mentioned above. 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