Which of the Following Is NOT a Correct Statement About

question 123

Multiple Choice

Which of the following is NOT a correct statement about adjusting entries?

• A) Every adjusting entry affects cash.
• B) Every adjusting entry affects the balance sheet.
• C) Every adjusting entry affects net income.
• D) Every adjusting entry must balance.

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Definitions:

Investment Yield

The profits made from an investment during a specified timeframe, represented as a proportion of the original investment's value.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Annually Compounded

Interest on an investment that is calculated and added to the principal sum once a year.

Rate of Return

The positive or negative change in the worth of an investment, quantified over a predetermined period and depicted as a percentage of the initial investment cost.