An Adjusting Entry Can Include A

question 154

Multiple Choice

An adjusting entry can include a:

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

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Definitions:

Patent

A legal document granted by the government providing an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Trade Name

A commercial name or designation used to identify a company or product in the market, which may or may not be registered as a trademark.

Exchange Transaction

A trade or swap of goods, services, or financial assets in the business or financial markets.

Goodwill

An intangible asset that arises when a company is purchased for more than the fair market value of its net assets, often attributed to reputation, brand, or intellectual property.