A. Definition of Adjusting Entries. Entries are made with the matching principle to match revenue and expenses in the period in which they occur. only income statement accounts. $5,700 2. Which of the following statements regarding the role of cash in adjusting entries is true? Adjusting entries always include. 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. < The effects of adjusting journal entries are automatically carried through to the trial balance and financial statements, making last-minute adjustments easier to make. THREE ADJUSTING ENTRY RULES. This is the fourth step in the accounting cycle. All adjusting entries include at least a nominal account and a real account. at least one income statement account and one balance sheet account. Previous question Next question Get more help from Chegg. Solution for Adjusting entries always involve A. Cash B. < Tick marks and review notes can be entered directly into computerized files. Relevance. Adjusting entries will never include cash. 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). 1 Answer. The amount to be used for the appropriate adjusting entry is 1. at least one income statement account and one balance sheet account (my answer) Answer Save. the cash account. 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. $11,900 4. $3,700 3. Lv 7. $6,900 Save Answer 10. Adjusting entries always involve a balance sheet account (Interest Payable, Prepaid Insurance, Accounts Receivable, etc.) and income statement account (Interest Expense, Insurance Expense, Service Revenues, etc.). Adjusting entries always include. only income statement accounts. the cash account. (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. Get 1:1 … Expert Answer . Adjusting entries always include one balance sheet and one income statement account r. 23 23. An income statement account C. All of the other answers are correct D. Retained… only balance sheet accounts. However, in some branches of accounting (especially auditing), the term adjusting entries could refer to any entry that aims to adjust incorrect account balances. In other words, the adjusting entries are needed so that a company's: For example, a service providing company may receive service fee from its clients for more … JKRB. Note: "Adjusting entries" refer to the 6 entries mentioned above. Adjustments are only made if cash has been received or paid during the period. < Data can be imported and exported to other applications. 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. 1. What are adjusting entries? only balance sheet accounts. 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