When saving an inventory adjustment, what does QuickBooks Online automatically record an adjustment to?

When saving an inventory adjustment in QuickBooks Online, the software automatically records an adjustment to the Inventory Asset account. This is key because the Inventory Asset account reflects the value of the inventory on hand, and any increase or decrease in this account directly affects the total value of inventory the business has.

When an inventory adjustment is made, it usually reflects physical changes to inventory levels, such as losses due to theft or damage, or increases from additional stock. Adjustments ensure that the balance sheet accurately reflects the current value of inventory and provides a more accurate view of the company's assets at any given time. By affecting the Inventory Asset account, it also has implications for the cost of goods sold and overall financial reporting.

The other options represent accounts that are not directly impacted by inventory adjustments in this context. The Equity account pertains more to owner’s equity and retained earnings, the Sales Revenue account relates to income from sales rather than changes in physical inventory, and Accounts Payable is used for liabilities incurred from purchases but does not directly reflect inventory changes. Thus, the choice of the Inventory Asset account is most fitting in understanding how inventory adjustments affect the overall accounting framework.