A Company Makes a Deferral Adjustment That Increased a Revenue

question 174

Multiple Choice

A company makes a deferral adjustment that increased a revenue account.This must mean that a(n) :

• A)expense account was decreased by the same amount.
• B)expense account was increased by the same amount.
• C)liability account was decreased by the same amount.
• D)asset account was decreased by the same amount.

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Definitions:

Significance F

A test statistic used in the analysis of variance (ANOVA) to determine if the means of several groups are all equal or if at least one is significantly different.

Fit

The degree to which a model, test, or value accurately reflects the expected outcomes or observations.

Homoscedasticity

A condition in regression analysis where the variance of the residuals, or errors, is constant across all levels of the independent variable.

Regression Line

A line of best fit through a dataset in linear regression analysis, showing the relationship between the independent and dependent variables.