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:

Assistance

The act of helping or providing support to others, often to overcome difficulties or achieve certain tasks.

Acquisitive Stage

According to Schaie, the first stage of cognitive development, encompassing all of childhood and adolescence, in which the main developmental task is to acquire information.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding across the lifespan.

K.Warner Schaie

A psychologist known for his work on adult cognitive development, particularly the stages of cognitive change that adults undergo as they age.