Which of the Following Does Not Correctly Describe an Adjusting

question 117

Multiple Choice

Which of the following does not correctly describe an adjusting journal entry that debits supplies expense and credits supplies?

• A)The entry increases expenses and decreases assets.
• B)The entry decreases net income and decreases assets.
• C)The entry increases expenses and increases retained earnings.
• D)The entry decreases net income and decreases stockholders' equity.

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Definitions:

Culture

The social behavior and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Stable

Refers to a situation or condition that is not significantly changing, showing little variability, and is dependable over time.

Societal Expectations

The standards and norms that society holds for individuals and organizations, influencing their behavior and actions.

Corporations

Legal entities recognized under the law, able to own property, incur debt, sue and be sued, and conduct business activities.