32.8k views
3 votes
Every adjustment entry affects:

at least one permanent account and one temporary account.
only a permanent account.
only a temporary account.
only a revenue account

User Dbuchet
by
5.8k points

1 Answer

4 votes

Answer:

one permanent account and one temporary account.

Step-by-step explanation:

The adjustment is made to a permanent account, using a temporary account

For example:

insurance expense debit (T)

prepaid insurance credit (P)

to record expired insurance for the period

depreciation expense debit (T)

accumulated depreciation equipment credit (P)

to record depreciation for the period

unearned revenue debit (P)

service fee revenue credot (T)

to record accrued revenue

supplies expense debit (T)

supplies credit (P)

In this example, all have in common a permanent account (Asset, Liability or equity)

and a temporary account (expense or revenue)

The goal of the adjustment entries is to represent the past of time.

We will have accrued expenses or accrued revenues.

Remember that, temporary account are those which the accoutning closes at the end of the period. (revenue and expenses)

While permanent account stay, assets, liability and equity.

User Pooria Azimi
by
5.8k points