Regarding the Effects of End-Of-Period Adjustments,state Whether Each of the Following

question 33

Short Answer

Regarding the effects of end-of-period adjustments,state whether each of the following statements is true or false.
_____ a)Recording the usage of supplies involves an increase in liabilities and a decrease in equity.
_____ b)The accrual of salaries is considered a claims exchange transaction.
_____ c)Recording services performed on a prepaid contract involves a decrease in liabilities and an increase in assets.
_____ d)End-of-period adjustments often affect cash flows.
_____ e)Failure to record accrued salaries at the end of the year will cause reported net income to be higher than it should have been.