An Adjusting Entry Could Not Consist Of

question 207

Multiple Choice

An adjusting entry could not consist of:

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

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Definitions:

Complexity-Related

Pertains to issues or aspects that are complicated by multiple factors, including systems, processes, or products that are challenging to understand, manage, or operate due to their intricate nature.

Size-Related

Pertaining to factors or characteristics that depend on the size or scale of an operation or entity, often influencing costs and efficiencies.

Time-Driven

A method or approach that estimates costs, resources, or time based on the duration needed to complete specific activities.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.