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Ivan is making several entries into the general journal at the restaurant where he serves as an accountant. The main difference between entries for routine business transactions and adjusting entries is that:
Answer
a. entries for business transactions usually affect fewer kinds of accounts than adjusting entries. b. entries for business transactions are made more often than adjusting entries. c. adjusting entries are usually higher than entries for routine business transactions. d. adjusting entries are usually lower than entries for routine business transactions.
What role does depreciation play in estimating incremental cash flows? Depreciation expense is a tax deductible expense and thus affects cash flow through its effect on taxes.
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