Which of the Following Statements About Adjusting Entries Is Not

question 148

Multiple Choice

Which of the following statements about adjusting entries is not correct?

• A) Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period.
• B) Adjustments help to ensure the related accounts on the balance sheet and income statement are up to date and complete.
• C) Adjusting entries often affect the cash account.
• D) Adjusting entries generally include one balance sheet and one income statement account.

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