Assuming No Adjusting Journal Entries Have Been Made During the Year,the

question 42

Multiple Choice

Assuming no adjusting journal entries have been made during the year,the journal entry on the due date of the cash interest payment for bonds issued at a premium has just been prepared.Which of the following is not an effect of the entry?

• A)An increase in expenses and a decrease in liabilities.
• B)An increase in expenses and an increase in liabilities.
• C)A decrease in both liabilities and stockholders' equity.
• D)A decrease in both assets and liabilities.

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Definitions:

Social Security

A public retirement pension system administered by the federal government.

Minority Group

A term used to describe a group of people who experience a narrower access to power and resources within a society due to various characteristics such as race, religion, language, or ethnicity.

Physical Characteristics

The defining traits, qualities, or properties that can be observed or measured on a physical object, person, or phenomenon.

Cultural Characteristics

The beliefs, customs, practices, and social behavior of a particular nation or people defining their distinct identity.