Question

Which statements about adjusting entries are FALSE?

A. Adjusting entries are recorded in the general journal but are not posted to the accounts in the general ledger.

B. Adjusting entries are often made because some business events are not recorded as they occur.

C. Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities.

D. Adjusting entries always involve two statement of financial position account​

Answer 1

Explanation:

C. Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities.