Final answer:
The claim that adjusting entries do not need to be posted to the general ledger is false. These entries must be recorded to reflect accurate financial information and failing to post them can result in errors in financial reporting.
Step-by-step explanation:
The statement that adjusting entries do not need to be posted to the general ledger is false. Adjusting entries are critical for ensuring that the accounting records reflect the true financial position and performance of a company. They are made at the end of the accounting period to allocate income and expenditure to the correct period, to adjust the balance of certain accounts, and to recognize any unrecorded revenues and expenses.
Once an adjusting entry is made in the journal, it must be posted to the general ledger to update the account balances accurately. Failing to post these entries would mean that the trial balance, income statement, and balance sheet would not be accurately updated, leading to potential errors and misstatements in financial reporting. For example, if accrued expenses are not recorded through an adjusting entry, the expenses would be understated, and net income would be overstated.