Which of the following statements about adjustments is not correct?
A. Adjusting entries always involve one income statement account and one balance sheet account.
B. Adjustments to prepaid expenses and deferred revenues are deferral adjustments.
C. Adjusting entries affect the cash account.
D. Adjustments for wages and income taxes are normally accrual adjustments.
Answer: C
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Answer the following statement true (T) or false (F)
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What will be an ideal response?
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