If the Effect of the Debit Portion of an Adjusting

question 174

Multiple Choice

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

• A) decreases the balance of an owner's equity account
• B) increases the balance of a liability account
• C) increases the balance of an asset account
• D) decreases the balance of an expense account

---

Definitions:

Straight Rebuy

A routine purchase of the same goods or services without seeking new information or considering other suppliers.

Buying Process

The series of steps consumers go through in deciding what product or service to purchase.

New Buy

A transaction situation characterized by a consumer purchasing a product or service for the first time, which involves a higher level of decision-making and risk.

B2B Buying Situation

The context or scenario surrounding a purchase decision made by a business from another business, including factors such as urgency, budget, and specifications.