Which of the Following Would Be Increased by an Accounting

question 1

Multiple Choice

Which of the following would be increased by an accounting policy change involving the accrual of greater employee benefits expense?

• A) Assets
• B) Liabilities
• C) Net profit
• D) Retained profits

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense account.

Acquisition Method

An accounting procedure for recording the purchase of one company by another, focusing on fair value assessments of acquired assets and liabilities.

Subsidiary Shares

Subsidiary shares are equity shares held by a parent company in a subsidiary company, giving it ownership interest.

Selling Price

The amount of money a buyer pays to purchase an item or service from a seller.