Which of the Following Statements About Adjustments Is Not Correct

question 134

Multiple Choice

Which of the following statements about adjustments is not correct?

• A) When making an adjustment to recognize supplies used in a period, total assets will not change.
• B) Accrued wages are wages owed, but not yet paid, to employees; the accrued wages will need to be recorded with an adjusting entry that increases expenses.
• C) Deferral adjustments are used to update amounts that have been previously deferred on the balance sheet.
• D) Depreciation is an example of a deferral adjustment.

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Definitions:

Sales Dollars

Revenue generated from the sale of goods and services, expressed in monetary units.

Break-Even

The point at which total costs and total sales are equal, resulting in no net loss or gain.

Common Fixed Expenses

Expenses that do not change with the level of production or sales over a certain period and are shared among different segments or products of a business.

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.