How Will the Following Adjusting Journal Entry Affect the Accounting

question 48

Multiple Choice

How will the following adjusting journal entry affect the accounting equation? $$\begin{array} { | c | r | r | } \hline \text { Unearned Subscription Revenue } & 11,500 & \\\hline \text { Subscription Revenue } & & 11,500 \\\hline\end{array}$$

• A) increase assets, increase revenues
• B) increase liabilities, increase revenues
• C) decrease liabilities, increase revenues
• D) decrease liabilities, decrease revenues

---

Definitions:

Video Display Terminals

Electronic devices with a screen used to display data or video output from computers, including monitors, televisions, and other display screens.

Low-Level Radiation

Radiation that is at a lower intensity compared with other forms, usually referring to background or environmental radiation that is not expected to cause harm at normal exposure levels.

Pregnancy

The condition of having a developing embryo or fetus in the body, after union of an ovum and spermatozoon.

Wrongful Dismissal

The failure of an employer to give reasonable notice of termination of a contract of employment.