Which of the Following Would NOT Be a Correct Form

question 45

Multiple Choice

Which of the following would NOT be a correct form for an adjusting entry?

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

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Definitions:

Conversion

The wrongful taking, using, or retaining possession of personal property that belongs to another.

Personal Property

Items of property that include movable assets as opposed to real property (land and buildings).

Gross Negligence

A legal concept signifying a severe degree of negligence demonstrating a reckless disregard for the safety or lives of others.

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.