Question

Which of the following statements is correct?

• Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.

• Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded.

• Adjusting entries are used to record both accrued expenses and accrued revenues

• Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time.

• All of these

Answer 1

Answer:- E point all of these are correct

Which means Prepaid Expenses, Depreciation and Unearned revenues involved previously recorded Assets and Liabilities.

Accrued expenses and accrued revenues involved Assets and liabilties that have not yet recorded.

Adjusting entries are used to record both accrued Expenses and accrued revenues.

Prepaid expenses, Depreciation and Unearned revenues require adjusting entries to record the effects of the passage of time.

All the above statements are correct