Which One of the Following Adjustments Will Increase Assets

question 39

Multiple Choice

Which one of the following adjustments will increase assets?

• A)Interest incurred on money borrowed during the period but not yet paid to the bank is accrued.
• B)Rent revenue is recorded for amounts owed by a tenant but not yet paid.
• C)The use of supplies is recorded.
• D)Depreciation for the period is recorded.

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Definitions:

Average Rate of Return

A financial ratio that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.

Cash Payback Period

The timeframe it takes for an investment to generate cash flows sufficient to recover the initial investment cost.

Time Value of Money Concept

A principle that the value of money is dependent on time, primarily due to the potential earning capacity of money over time.

Investment Rationing

Allocating scarce capital funds among various potential investments to achieve the best return, often under budget constraints.