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

question 133

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 a decrease in assets 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 never affect cash flows.
_____ e) Failure to record accrued salaries at the end of the year will cause reported income to be higher than it should have been.

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Definitions:

Vocational Direction

Guidance and counseling provided to individuals to help them select, prepare for, enter, and be successful in a career.

Ideological Stance

The collection of beliefs, values, and opinions held by an individual or group that shapes their perspective and approach towards political, social, and economic issues.

Sexual Orientation

The inherent or immutable enduring emotional, romantic, or sexual attraction to other people based upon their gender in relation to one’s own.

Identity Diffusion

A stage in Erikson's theory of psychosocial development where an individual has not yet achieved a sense of personal identity.