Question

Which statement is false?

a. Most companies typically do not have to prepare the adjusting journal entries.
b. Periodically, certain adjustments that are not daily business activities must be made to the accounts to update the balances.
c. The adjusted balances are used to prepare the financial statements. These adjusting journal entries must always be made on the date the financial statements are prepared, but they can be recorded more often.
d. The adjustments, called adjusting journal entries, are always recorded in the general journal. They are then posted to the general ledger to update the balances in the accounts.

Answer 1

a. Most companies typically do not have to prepare the adjusting journal entries.

Step-by-step explanation:

IFRS requires financial statements to be up to date. In order for financial statements to be up to date there must be adjusting journal entries, entries like fair value losses or gains at the end of the year.