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:

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Sweets

Food items that are rich in sugar and often used as a treat or dessert.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.

Experimenter's Manipulations

The deliberate alteration of variables by a researcher in an experiment to determine their effects on the outcome.