Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) Prepaid expense, depreciation, and unearned revenue adjusting entries involve previously recorded assets and liabilities
B) Closing entries affect the accumulated depreciation account
C) Adjusting entries can be used to record both accrued expenses and accrued revenues
D) Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time