Which of the following statements about adjustments is correct?
A)Accrued wages are wages owed,but not yet paid,to employees;the accrued wages will need to be recorded with an adjusting entry that increases expenses.
B)When making an adjustment to recognize supplies used in a period,total assets will not change.
C)Deferral adjustments are used to update amounts that have been previously deferred on the income statement.
D)Depreciation is an example of an accrual adjustment.

Question

Quizplus · Accepted Answer

The adjustment to record the use of supplies includes a debit to Supplies Expense and a credit to Supplies for the amount of supplies used during the period.That credit decreases the Supplies account,which is an asset account.Total assets also decrease.Deferral adjustments update amounts previously recorded on the balance sheet.Depreciation is an example of a deferral adjustment.

Which of the Following Statements About Adjustments Is Correct