Adjustments Affect at Least

question 174

Multiple Choice

Adjustments affect at least:

• A)one revenue and one expense account.
• B)one asset and one liability account.
• C)one revenue and one balance sheet account.
• D)one income statement account and one balance sheet account.

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Definitions:

Absorption

In accounting, it refers to the process of incorporating all costs of production into the value of a product, including both direct and indirect expenses.

Margin Of Safety Ratio

A financial metric that measures the difference between actual or projected sales and the break-even point.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point.

Actual

Pertaining to the real, recorded, or true values or outcomes, as opposed to estimated, planned, or theoretical figures.