Question

Which of the following account types is directly affected by a Type 4 adjusting entry?

a) Asset
b) Liability
c) Owners' Equity
d) Revenue
e) Expense
f) Dividend

Answer 1

A Type 4 adjusting entry typically affects the Owners' Equity account. Hence, the correct answer is option C.

Step-by-step explanation:

In accounting, adjusting entries are made to ensure that the financial statements reflect accurate and up-to-date information. Type 4 adjusting entries typically involve the adjustment of owners' equity accounts. Therefore, the correct answer is c) Owners' Equity.