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Which of the Following Statements Is False Regarding Adjusting Entries

Question 179

Multiple Choice

Which of the following statements is false regarding adjusting entries?


A) Cash is neither debited nor credited as a result of adjusting entries.
B) Each adjusting entry affects one statement of financial position account and one income statement account.
C) Each adjusting entry affects one revenue account and one expense account.
D) Adjusting entries involve accruals or deferrals.

Correct Answer:

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