Quiz AC-9 - 26. Question: The adjusting entries should be...

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26. Question: The adjusting entries should be journalized and posted before financial statements are prepared. Your Answer: True CORRECT False Instructor Explanation: Consider the fundamental reason for preparing adjusting entries. Points Received: 1 of 1 Comments: 27. Question: Adjusting for depreciation results in a decrease to assets and a decrease to stockholders' equity. Your Answer: True CORREC T False Instructor Explanation: Depreciation is recognition of the wear-and-tear on fixed assets as an expense. So depreciation decreases assets and recognizes an expense, a decrease in stockholders' equity. Points Received: 1 of 1 Comments: 28. Question: A If the adjusting entry to record the current period's prepaid rent that is expired is omitted, current assets will be overstated. Your Answer: True CORREC T False Instructor Explanation: When an asset is used up, the adjusting journal entry will decrease the asset and recognize an expense. Without this adjusting journal entry, the asset is too high and
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Quiz AC-9 - 26. Question: The adjusting entries should be...

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