Indicate Whether Each of the Following Statements Is True or False

question 132

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)In an accrual accounting system,a debit entry to Cash is never accompanied by a credit entry to Revenue.
_____ b)The adjustment for accrued salaries would involve a debit to Salaries Expense and a credit to Salaries Payable.
_____ c)Adjusting entries will always include either a debit to an expense account or a credit to a revenue account.
_____ d)The closing entry for an expense involves a debit to Retained Earnings and a credit to the expense.
_____ e)The closing entry for a revenue involves a debit to the revenue and a credit to Retained Earnings.

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Definitions:

Expected Opportunity Loss

The anticipated amount of loss associated with not choosing the best course of action.

Environmentally Safe Material

Substances or materials that do not harm the environment, including during their production, use, and disposal.

Minimum Expected Loss

A decision-making criterion based on choosing the action that has the smallest expected loss, used under uncertainty to minimize possible losses.

Payoff Table

A table that displays the possible outcomes or results of different decisions under various states of nature.