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:

Winding Up

The process of concluding a company's affairs, settling its liabilities, and distributing the remaining assets to the shareholders or owners.

Corporations Act

The legislation governing corporate practices, including financial reporting and corporate governance, in particular jurisdictions such as Australia.

Just and Equitable

Principles used in legal contexts to ensure fairness and justice in the application or interpretation of laws or regulations.

Liquidation

The process of winding up a company's financial affairs by selling assets to pay off liabilities, with any surplus distributed to shareholders.