Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) Companies can prepare the income statement and the statement of financial position directly from the adjusted trial balance.
• B) Companies can prepare the statement of cash flows directly from the adjusted trial balance.
• C) The adjusted trial balance proves the equality of total debits and total credits after all adjustments.
• D) Each adjusting entry affects one statement of financial position account and one income statement account.

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Definitions:

Formal Channels

Follow the official chain of command.

Organization's Hierarchy

The arrangement of individuals within an organization according to levels of authority and responsibility.

Noise

Any external or internal interference that disrupts the communication process, hindering the clear delivery or receipt of messages.

Steve Jobs

Co-founder of Apple Inc., known for his revolutionary contributions to personal computing, animation, and consumer electronic design.