Questions: Question 8 of 50. A properly prepared adjusting journal entry must contain . two income statement accounts a balance sheet account and an income statement account an asset account and a liability account two balance sheet accounts

The answer is the second one: a balance sheet account and an income statement account.

Explanation for each option:

• Two income statement accounts: This is incorrect because adjusting entries typically involve one account from the income statement and one from the balance sheet to ensure that revenues and expenses are recorded in the correct accounting period.

• A balance sheet account and an income statement account: This is correct. Adjusting entries are made to update the balances of accounts before financial statements are prepared. They usually involve one account from the balance sheet (such as an asset or liability) and one account from the income statement (such as revenue or expense).

• An asset account and a liability account: This is incorrect because adjusting entries are not typically made between two balance sheet accounts. They are made to adjust income and expenses to the correct period.

• Two balance sheet accounts: This is incorrect because adjusting entries are not made between two balance sheet accounts. They are meant to adjust the income statement and balance sheet accounts to reflect the true financial position and performance of the business.

In summary, a properly prepared adjusting journal entry must contain a balance sheet account and an income statement account.