The Adjusting Entry Increases Expenses and Increases Liabilities

question 97

Multiple Choice

The adjusting entry increases expenses and increases liabilities.

• A) depreciation
• B) wages
• C) prepaid rent
• D) revenue received from customers in advance

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Definitions:

Common Name

The simplified, non-scientific name of a chemical substance or organism that is generally known and used.

Compound

A substance made up of two or more different elements chemically bonded together in a fixed ratio.

Mutually Exclusive

Two events that cannot happen at the same time in a given experiment or situation.

P(A|B)

The conditional probability of event A occurring given that event B has occurred.