A Company Makes a Deferral Adjustment That Reduces a Liability

question 124

Multiple Choice

A company makes a deferral adjustment that reduces a liability.This must mean:

• A)an expense account is decreasing by the same amount.
• B)an expense account is increasing by the same amount.
• C)a revenue account is increasing by the same amount.
• D)a revenue account is decreasing.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Non-Controlling Interest

A stake in a company that is less than 50%, meaning the investor does not have a majority control.

Preference Shares

Shares which have rights to dividends that are paid out before dividends to common shareholders and may have priority over common shares in the event of liquidation.

Goodwill

Represents the excess amount paid over the fair market value of the net assets during an acquisition, attributed to factors like brand reputation, customer relations, and intellectual property.

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets at the time of acquisition, essentially another term for goodwill.