Which of the Following Adjustments Would Require Decreasing the Liabilities

question 81

Multiple Choice

Which of the following adjustments would require decreasing the liabilities reported on the statement of financial position?

• A) A company uses $400 worth of supplies during the year.
• B) A company records $400 worth of depreciation on equipment.
• C) A company has earned $400 of revenue collected at the beginning of the year.
• D) A company records $400 of wages earned by employees that will be paid next year.

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Definitions:

Transparency

The practice of being open, honest, and straightforward about various company operations and decisions, fostering trust and accountability.

Strategy Developer

An individual or entity responsible for creating and implementing plans or strategies to achieve specific goals or objectives.

Framing Financial Policies

The process of developing and establishing guidelines or principles for managing an organization's financial resources.

Accounting Department

A division within a company responsible for managing financial records, payroll, invoicing, and ensuring compliance with financial regulations.