Which of These Accounts Would Normally Be Affected by an Adjustment

question 84

Multiple Choice

Which of these accounts would normally be affected by an adjustment?

• A)Notes Payable.
• B)Equipment.
• C)Cash.
• D)Deferred Revenue.

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Definitions:

Physical Inventory

A process where a business physically counts its entire inventory to ensure the accuracy of its records and control its stock levels.

End of the Period

Refers to the conclusion of a reporting timeframe in accounting, such as the end of a fiscal quarter or year, when various calculations and adjustments are made.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Period's Expenses

Costs incurred by a business during a specific period of time, such as a month or year, in the course of its operations.