Which of the Following Statements Is Incorrect

question 24

Multiple Choice

Which of the following statements is incorrect?

• A) Adjusting entries affect only balance sheet accounts.
• B) Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities.
• C) Adjusting entries can be used to record both accrued expenses and accrued revenues.
• D) Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
• E) Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.

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Definitions:

Population Standard Deviation

A measure of the spread of a set of values in a population, giving insight into the variability within the entire population.

Sample Size

The number of observations or elements selected from a population to be included in a sample.

Upper Limit

The highest value in a range or set of data, often referring to the maximum point in an interval or boundary in statistical analysis.

Standard Deviation

An indicator that determines how spread out a dataset is from its mean, obtained by taking the square root of the variance.