How Will the Following Adjusting Journal Entry Affect the Accounting

question 98

Multiple Choice

How will the following adjusting journal entry affect the accounting equation?

• A)increase assets, increase revenues
• B)increase liabilities, increase revenues
• C)decrease liabilities, increase revenues
• D)decrease liabilities, decrease revenues

---

Definitions:

Damages

Compensation claimed by or awarded to a party for loss or injury suffered due to another's actions or negligence.

Proving Fraud

The process of establishing the intentional deception made by one party in order to gain an unfair advantage over another, which often involves legal proceedings.

Innocent Party

An individual or entity that is not at fault or involved in wrongdoing, especially in a legal context.

Fraud

A wrongful or criminal deception intended to result in financial or personal gain.