Which of the Following Transactions Results in an Increase in Both

question 86

Multiple Choice

Which of the following transactions results in an increase in both net income and stockholders' equity?

• A)Paying cash to acquire a six-month insurance policy.
• B)Collecting cash from a customer for services to be provided in the future.
• C)The accrual of interest expense year-end.
• D)Adjustment of the unearned revenue account for revenue earned during the perioD.Adjusting unearned revenue for revenue earned results in a credit to revenue and a debit to unearned revenue.This decreases liabilities and increases net income and stockholders' equity.

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Definitions:

Patient Histories

These are comprehensive records of a patient's medical background, symptoms, previous treatments, and other health-related information, critical for diagnosis and treatment plans.

Freud's Theories

A comprehensive set of psychological perspectives focusing on the impact of the unconscious mind, sexuality, and early childhood experiences on personality.

Psychological Theories

Frameworks or models that offer explanations for human thoughts, behaviors, and emotions, based on empirical evidence and observation.

Scientific Evidence

Information, data, or findings obtained through systematic observation, experimentation, or research that serves as a basis for making conclusions or judgments in science.