Both Correcting Entries and Adjusting Entries Always Affect at Least

question 72

True/False

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

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Definitions:

Sales

Revenue generated from goods or services sold by a company during a specific period.

Purchase Returns

Goods returned by the buyer to the supplier usually due to defects or quality issues, sometimes leading to a refund or credit.

Sales Salary Expense

The total amount of salary and wages paid to employees involved in the sales process, reflected as an expense on the income statement.

Departmental Gross Profit

The gross profit of a specific department within a store or company, calculated by subtracting the cost of goods sold in that department from its sales revenue.