Which of the Following Transactions and Events Results in an Increase

question 72

Multiple Choice

Which of the following transactions and events results in an increase in liabilities and a decrease in net income?

• A)The accrual of wages expense at year-end.
• B)Collecting cash from a customer for services to be provided in the future.
• C)The accrual of revenue earned at year-end.
• D)Adjustment of the unearned revenue account for revenue earned during the period.

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Definitions:

Conflict of Interest

A situation in which an individual's personal interests could potentially influence or appear to influence their professional judgment or responsibilities.

Shareholders' Meeting

A gathering of a company's shareholders, designed to inform them of the company's performance, elect the board of directors, and make decisions on corporate matters.

Fiduciary Duty

A duty to place a client’s interest above the professional’s own interests.

Debentures

A type of long-term security issued by a company, backed only by the general creditworthiness and reputation of the issuer.