Chap 18 Accounting Review T/F

Every adjustment affects one permanent and one temporary account.
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Terms in this set (14)
Federal Corporate Income Tax Payable is a liability account.TrueIn the Adjustments Credit column, the amount entered on the line for Prepaid Insurance is the amount of the premium that has expired during the period.TrueAmounts are extended from the Adjusted Trial Balance section of the work sheet first to the Income Statement section and then to the Balance Sheet section.FalseThe adjustments on the work sheet are the source of the information for the adjusting entries.True