If the Effect of the Debit Portion of an Adjusting

question 26

Multiple Choice

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

• A) increases the balance of a revenue account
• B) decreases the balance of a liability account
• C) increases the balance of an expense account
• D) decreases the balance of a revenue account

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Definitions:

Farm Subsidies

Financial support and assistance provided by the government to farmers and agribusinesses to supplement their income and manage the supply of agricultural commodities.

American Institution

Organizations, principles, or traditions that are foundational to the society and culture of the United States.

International Value

The worth of a product or service in the international market, often influenced by factors like exchange rates, demand and supply in global markets, and international competition.

Agricultural Exports

Goods produced through farming and agriculture that are sold to other countries.