An Accountant Has Debited an Asset Account for $1,200 and Credited

question 6

Multiple Choice

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

• A) Nothing further must be done.
• B) Debit a Stockholders' equity account for $700.
• C) Debit another asset account for $700.
• D) Credit a different asset account for $700.

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Definitions:

Occupational Choice

The decision-making process individuals go through to choose among various job opportunities, careers, or professions based on personal preferences, skills, and environmental factors.

Extraverted Individual

A person characterized by outgoing, energetic behavior, who often finds energy in social interactions and external stimuli.

Enterprising Occupations

Careers that involve starting up and carrying out business ventures, including seeking opportunities for profit, making strategic decisions, and demonstrating leadership.

Artistic Occupations

Artistic occupations encompass jobs that involve creative or aesthetic expression, including roles in visual arts, performance, writing, and design.