Question Details

A business entity has only one accounting cycle



1.	A business entity has only one accounting cycle over its economic existence.
	
	2.	Both correcting entries and adjusting entries always affect at least one statement of financial position account and one income statement account.

	3.	Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.


	4.	An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

	5.	Correcting entries will never affect Statement if Financial Position accounts..



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