which of the following is not a correct statement about adjusting entries?\n\na. every adjusting entry…

Brief Explanations:

Adjusting entries are made to ensure revenues and expenses are recognized in the correct period. They involve balance - sheet accounts (e.g., prepaid expenses, unearned revenues) and income - statement accounts (e.g., revenues, expenses). Since they are made before the adjusted trial balance (to update accounts), B is correct. Every adjusting entry has an impact on the balance sheet (as it affects either an asset, liability, or equity account) and on net income (as it affects revenues or expenses). However, cash is not affected by adjusting entries. Adjusting entries are for accruals and deferrals (non - cash transactions). For example, an adjusting entry for accrued salaries: debit Salaries Expense (income statement, affects net income) and credit Salaries Payable (balance sheet). No cash is involved.

Answer:

D. Every adjusting entry affects cash.