Which of the Following Statements About Adjustments Is Not Correct

question 163

Multiple Choice

Which of the following statements about adjustments is not correct?

• A)Adjusting entries affect the cash account.
• B)Adjustments to prepaid expenses and deferred revenues are deferral adjustments.
• C)Adjustments for wages and income taxes are normally accrual adjustments.
• D)Adjusting entries always involve one income statement account and one balance sheet account.

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