Which of the Following Correctly Describes the Following Adjusting Journal $\quad$

question 130

Multiple Choice

Which of the following correctly describes the following adjusting journal entry? Accounts receivable
$\quad$ Franchise fees revenue

• 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.Accrued revenues are previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable account.

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Definitions:

Uric Acid

(uric acid) The principal nitrogenous excretory product of insects, birds, and reptiles; a relatively insoluble end product of protein metabolism; also occurs in mammals as an end product of purine metabolism.

Endothermy

The physiological capability of an organism to maintain a stable internal body temperature regardless of external environmental conditions.

Aves

A class within the animal kingdom that encompasses all birds, characterized by feathers, beak with no teeth, and the laying of hard-shelled eggs.

Plastibell

A plastic device used in the circumcision of newborn boys, facilitating the removal of the foreskin without stitches.