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

Brief Explanations:

Adjusting entries are made to ensure that revenues and expenses are recognized in the period in which they are earned or incurred. They involve at least one income - statement account (affecting net income) and one balance - sheet account. Also, adjusting entries are posted before the adjusted trial balance is prepared. However, adjusting entries do not affect cash. Cash is affected when the actual cash transaction occurs (e.g., when cash is received or paid), not when an adjusting entry is made. For example, an adjusting entry for accrued revenue (revenue earned but not yet received in cash) does not involve cash.

Answer:

C. Every adjusting entry affects cash.