The Adjusting Entry Increases Expenses and Decreases Assets

question 4

Multiple Choice

The adjusting entry increases expenses and decreases assets.

• A) wages
• B) unearned revenue
• C) unrecorded revenue
• D) depreciation

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Definitions:

Impose

To enforce or apply a rule, tax, penalty, or restriction.

Settlement

In financial terms, a settlement is the process whereby securities are delivered, usually against in exchange for payment of money, to fulfill contractual obligations, such as those arising from the sale of securities.

Wage Freeze

A policy or condition where an employer decides not to increase the wages of its employees for a certain period, often during economic downturns.

Plant Upgrades

Investments made to improve the efficiency, capacity, or environmental impact of industrial facilities.