If the Effect of the Debit Portion of an Adjusting

question 29

Multiple Choice

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

• A) decreases the balance of a stockholders' equity account
• B) increases the balance of a liability account
• C) increases the balance of an asset account
• D) decreases the balance of an expense account

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Definitions:

Nanny-Camera

A hidden camera used for monitoring interactions within one's home, especially for observing caregivers.

Monitoring

Monitoring involves the continuous or regular observation and checking of activities or processes to ensure they are going as planned or meeting standards.

Moral Hazard

The situation in which one party is inclined to take risks because the negative consequences of the risk will be borne by another party.

Money-Back Guarantee

A money-back guarantee is a promise from a seller to refund a buyer's purchase price if the product sold does not satisfy the buyer's expectations.