Which of the following is false? 141)
A)Adjusting entries are not necessary under the cash basis of accounting.
B)Adjusting entries always affect at least one revenue or one expense account and at least one asset or liability account.
C)Adjusting entries are used to record the effects of internal economic events.
D)Adjusting entries are made at the end of an accounting period.
E)The cash account will usually be affected by adjusting entries.

Question

Quizplus · Accepted Answer

Adjusting entries typically do not affect the cash account as they are made to update other accounts to reflect accrual accounting principles.

Which of the Following Is False? 141)