Which of the Following Correctly Describes the Following Adjusting Journal

question 69

Multiple Choice

Which of the following correctly describes the following adjusting journal entry?

• A)Total assets do not change.
• B)The transaction is an example of an accrual.
• C)Stockholders' equity decreases.
• D)Net income is not affected.

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Definitions:

Past Memory

Recollections and information from previous experiences stored in the brain.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Sensation

The process by which sensory receptors and nervous system receive and represent stimulus energies from our environment.

Continuous Process

An ongoing operation that runs 24/7 without interruption or with minimal stops.