An Adjusting Entry Will Not Take the Format of Which

question 96

Multiple Choice

An adjusting entry will not take the format of which one of the following entries?

• A) A debit to an expense account and a credit to an asset account
• B) A debit to an expense account and a credit to a revenue account
• C) A debit to an asset account and a credit to a revenue account
• D) A debit to a liability account and a credit to a revenue account

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Definitions:

Capitalism

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit.

Self-Interest

The motivation of individuals to pursue their own advantages and well-being.

Price Ceilings

Price controls that outlaw trade at prices above the ceiling.

Intended

Something that is planned or meant to happen in a specific way.