Which One of the Following Adjustments Will Increase Assets

question 39

Multiple Choice

Which one of the following adjustments will increase assets?

• A)Interest incurred on money borrowed during the period but not yet paid to the bank is accrued.
• B)Rent revenue is recorded for amounts owed by a tenant but not yet paid.
• C)The use of supplies is recorded.
• D)Depreciation for the period is recorded.

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Definitions:

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Caveat Emptor

A legal principle that the buyer assumes the risk of quality in a purchase unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, including provisions on the formation of contracts, descriptions of goods, quality, and return policies.

Organically Grown

Refers to food produced without the use of synthetic pesticides, fertilizers, and other non-natural methods.