Ask Question
BusinessBusiness
23 April, 03:12

Which of the following statements is correct? A) Adjusting entries are used to record both accrued expenses and accrued revenues B) Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded. C) Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time. D) Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities. E) All of these

+4
Answers (1)
  1. 23 April, 03:34
    0
    E) All of these

    Explanation:

    Adjusting journal entry are entries in a general ledger of a company that occurs at the end of an accounting period to record any unrecognized income or expenses for that period. Transaction that is started in one accounting period but ended in a later period, requires an adjusting journal entry to properly account for the transaction. Adjusting journal entries can also refer to financial reporting which corrects a mistake made previously in an accounting period.

    The following statements are true and correct about Adjusting entries

    • Adjusting entries are used to record both accrued expenses and accrued revenues

    • Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded.

    • Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time.

    • Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following statements is correct? A) Adjusting entries are used to record both accrued expenses and accrued revenues B) Accrued ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Malcolm has several receipts from recent transactions that he entered in his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00.
Answers (1)
In the confirmation of accounts receivable, the auditor will most likely A. Request confirmation of a sample of the inactive account. B. Seek to obtain positive confirmations for at least 50% of the total dollar amount of the receivables. C.
Answers (1)
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $336,000.
Answers (1)
How are realized gains and losses on investment securities calculated: Group of answer choices a. Sales proceeds less cost b. Sales proceeds less cost + prior unrealized losses recognized c.
Answers (1)
What is a financial Reserve? A. An amount of money that's been set aside for emergencies B. A way of organizing finances to set and meet goals C. An amount of money that's been set aside for short-term goals D.
Answers (1)
New Questions in Business
The following items caused the only differences between pretax financial income and taxable income. 1.
Answers (1)
Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to the organization or individuals who own and/or control the entity. b.
Answers (1)
The reason for the Fed being set up as an independent agency of government is to:
Answers (1)
Headings in reports that describe the content of the section and may even give a conclusion about the section are called:
Answers (1)
Coronado Company purchased land for $80,000. The company also paid $12,000 in accrued taxes on the property, incurred $5,000 to remove an old building, and received $2,000 from the salvage of the old building.
Answers (1)
Home » Business » Which of the following statements is correct? A) Adjusting entries are used to record both accrued expenses and accrued revenues B) Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded.
Sign Up Forgot Password?