A Company Makes a Deferral Adjustment That Reduces a Liability

question 77

Multiple Choice

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

• A)an asset 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 different liability account is decreasing by the same amount.

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Definitions:

Description

A detailed account or explanation that outlines the characteristics, features, or particulars of an object, situation, or subject.

Dual Distribution

The process of a product being distributed through two different channels within the same market, often used to reach different customer segments.

Strategic Channel Alliance

A collaboration between businesses to optimize the distribution and sales channel without merging their operations, enhancing reach and efficiency.

Similarity

The degree to which two or more objects share common traits or characteristics.