An Accountant Has Debited an Expense Account for $1,000 and Credited

question 80

Multiple Choice

An accountant has debited an expense account for $1,000 and credited an asset account for $500. Which of the following would be a correct way to complete the recording of the transaction?

• A) Debit an asset account for $500.
• B) Credit a liability account for $500.
• C) Debit an owner's equity account for $500.
• D) Debit a liability account for $500.

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Definitions:

Shareholder Vote

A decision-making process where shareholders of a company vote on corporate matters, reflecting their ownership stake.

Articles of Incorporation

The primary legal document used to establish a corporation, detailing its structure and purpose.

Involuntary Dissolution

Involuntary Dissolution refers to the legal termination of a corporation's existence initiated by the state, creditors, or other external parties, not by the corporation's owners or members.

Fundamental Changes

Refers to significant alterations in the operations, structure, or policies of a company, often requiring shareholder approval.