Which of the Following Statements Is False Regarding Adjusting Entries

question 90

Multiple Choice

Which of the following statements is false regarding adjusting entries?

• A) Cash is neither debited nor credited as a result of adjusting entries.
• B) Each adjusting entry affects one statement of financial position account and one income statement account.
• C) Each adjusting entry affects one revenue account and one expense account.
• D) Adjusting entries involve accruals or deferrals.

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Definitions:

Northern Capitalists

Wealthy industrialists and financiers from the northern United States who played a significant role in the country's economic development post-Civil War.

Freedpeople

Individuals who have been released from the condition of slavery, often in the context of the 19th-century United States following the Civil War.

Agricultural Regions

Geographic areas known for a predominant focus on agriculture and farming activities.

Ownership of Land

Holding legal title or claim to a piece of ground, including the right to use, control, and transfer the land.