Question

Search 08 25 D 221 adjusting entries are done to make the financial statements more accurate B : RE: 117128 23 24 S 35 True False 22 adjusting entries will always include a balance sheet and income statement account 0. True False 29 3 cash is part of the closing process True False 250 D R4

Answer 1

1)

The given statement is True.

Supporting explanations:

The main purpose of adjusting entries is to adjust the respective accounts' balances in order to ensure that the financial statements like Income Statement, Balance Sheet etc. are correctly prepared.

Therefore, the given statement is True.

2)

The given statement is True.

Supporting explanations:

The adjusting entries have both accounts from Income Statement and Balance Sheet. For example, when supplies are used, Supplies which is an asset account from the balance sheet is credited and Supplies Expense which is an expense account from the income statement is debited. Another example is, Depreciation which is an expense account from the income statement statement is debited and Accumulated Depreciation account which is a contra-asset account from the balance sheet is credited. Therefore, the given statement is true.

3)

The given statement is False.

Supporting explanations:

All the revenue accounts and expenses accounts are only closed at the end of a period because these accounts temporary accounts where the balance of such accounts do not transfer to next period but cash is an asset account where its balance continues to exist so the balance of cash account is transfer to next period as opening balance.

Thus, the given statement is false.