Which of the Following Statements Is Incorrect

question 102

Multiple Choice

Which of the following statements is incorrect?

• A)Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities.
• B)Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
• C)Adjusting entries can be used to record both accrued expenses and accrued revenues.
• D)Prepaid expenses,depreciation,and unearned revenues often require adjusting entries to record the effects of the passage of time.
• E)Adjusting entries affect only balance sheet accounts.

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Definitions:

Relative Scarcity

The comparison of the scarcity of one resource, good, or service in relation to another, influencing its price and availability.

Empirical Evidence

Information obtained through observation and documentation of patterns and behaviors, serving as a basis for forming conclusions.

Proved Reserves

Quantities of natural resources, such as oil or natural gas, that geological and engineering data demonstrate with reasonable certainty to be recoverable under existing economic and operating conditions.

Titanium

A strong, lightweight, corrosion-resistant metal with significant usage in aerospace, medical devices, and consumer products.