Accrual Adjustments Involve Increasing

question 215

Multiple Choice

Accrual adjustments involve increasing:

• A)assets and revenues or increasing liabilities and expenses.
• B)assets and expenses or increasing liabilities and revenues.
• C)assets and decreasing revenues or increasing liabilities and decreasing expenses.
• D)assets and decreasing expenses or increasing liabilities and decreasing revenues.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Inventory

Refers to the goods and materials that a business holds for the ultimate goal of resale.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.

Money Market Accounts

Savings accounts that typically offer higher interest rates in exchange for larger deposit balances, with limited transaction privileges.