Which of the Following Statements About Adjustments Is Correct

question 56

Multiple Choice

Which of the following statements about adjustments is correct?

• A)An accrual adjustment that increases an asset will include an increase in an expense.
• B)A deferral adjustment that decreases an asset will include an increase in an expense.
• C)An accrual adjustment that increases an expense will include an increase in assets.
• D)A deferral adjustment that increases a contra-account will include an increase in an asset.

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Definitions:

Vendor Transaction

A financial transaction occurring between a business and its vendor, typically involving the purchase of goods or services.

Services Billed

Charges invoiced to a client or customer for professional services or work completed.

Pay Later

A payment option allowing consumers to purchase goods or services immediately but defer payment until a later date.

QBO Vendors List

A feature in QuickBooks Online that allows users to manage and keep track of their vendors and supplier information.