Which of the following statements is correct about an adjusting entry? O a. It is prepared to assign revenues to the periods in which they are earned. ObIt affects only the statement of cash flows....

Which of the following statements is correct about an adjusting entry? O a. It is prepared to assign revenues to the periods in which they are earned. ObIt affects only the statement of cash flows. OcIt is prepared to update only the asset accounts . Od is a compound entry