Which of the Following Statements Is Correct? 98)

Multiple Choice

Which of the following statements is correct? 98)

A) Adjusting entries are used to record both accrued expenses and accrued revenues
B) Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
C) Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded.
D) Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time.
E) All of these answers are correct.