Which statement about correcting entries is true?

• A. They fix errors in the journal or ledger without erasing
• B. They record revenue from customers
• C. They adjust depreciation
• D. They close the books

Answer: (A)

Correcting entries are journal entries used to fix mistakes in the accounting records without erasing the original posting. When an error is found, a correcting entry puts the correct amounts into the proper accounts and, if needed, reverses the effect of the incorrect posting, preserving an audit trail. This is distinct from recording new revenue, adjusting depreciation, or closing the books, which are separate processes. So the true statement is that correcting entries fix errors in the journal or ledger without erasing the original entry.