Which of the Following Statements Is Incorrect

question 211

Multiple Choice

Which of the following statements is incorrect?

• A) Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
• B) Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
• 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) Adjusting entries affect the cash account.

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Definitions:

Picture Border

A decorative frame that can be added around images in a document or presentation to enhance their appearance or distinguish them from the background.

Artistic Effect

A digital filter or tool used in graphic design software to apply creative styles to images, such as painting or sketching effects.

Font Color

The color attribute of text in a document or a webpage, which can be customized.

Paragraph Group

A collection of formatting tools in word processing software specifically designed for modifying paragraph settings.