An Adjusting Entry Can Include A

question 130

Multiple Choice

An adjusting entry can include a:

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

---

Definitions:

Ratification

This is the act of officially confirming or approving a decision or agreement, making it valid and binding.

Carrying Amount

The value of an asset or liability as reported on the balance sheet, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Pre-Acquisition Equity

The equity interest in a company existing prior to its acquisition by another entity, used to determine the acquisition date fair value of the investee.

Dividend Declared

The official announcement by a company's board of directors that a dividend will be paid to shareholders, specifying the amount and payment date.