FDNACCT - Unit 4_Part 4 - Adjustments, FS, Closing

Adjusting entries are made after the preparation of financial statements.

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• F

Costs incurred during an accounting period but unpaid and unrecorded are accrued expenses.

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• F

Deferral is the term used to indicate a delay of the recognition of an expense already paid or of a revenue already received.

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• F

Accumulated depreciation would either be equal to or higher than depreciation expense.

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• F

When the accountant makes an error understating the allowance for doubtful accounts, the net realizable value is also understated.

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• F

The only difference between cost of goods available for sale and cost of sales is beginning inventory.

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• F

Store supplies expense, depreciation of delivery equipment, and rent expense are examples of distribution costs (marketing and selling expenses).

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• F

Net income and additional investment increase Owner's Equity.

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• F

Office supplies is part of prepaid expenses which is part of Current Assets.

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• F

Statement of Financial Position accounts is dated for the period ended.

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• F