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:

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Physiological Arousal

A state of heightened physiological activity, involving the nervous and endocrine systems, often in response to stimuli.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Medulla

A section of the brainstem involved in autonomic functions such as breathing, heart rate, and blood pressure.