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If the Effect of the Debit Portion of an Adjusting

question 174

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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?


Definitions:

Float

The time difference between when a check is written and when the funds are actually withdrawn from the account, or the number of shares available for trading of a particular stock.

Smart Card

A smart card is a plastic card embedded with a microprocessor chip, which can store and process data, used for various purposes such as financial transactions, identification, and access control.

Dividend Capture

An investment strategy aimed at buying stocks before the ex-dividend date and selling them shortly after, to collect dividend payouts.

Lockboxes

Banking service that speeds up collection of payments by having those payments mailed directly to a location accessible by the bank, reducing processing time.

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