One Type of Deferral Adjustment Reduces the Balance in A(n)________

question 172

Multiple Choice

One type of deferral adjustment reduces the balance in a(n) ________ account on the balance sheet and transfers that reduction into a(n) ________ account on the income statement.

• A)asset;expense
• B)asset;revenue
• C)liability;expense
• D)liability;asset

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Definitions:

Federal Fair Labor Standards Act

U.S. legislation that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.

Minimum Wage

The lowest hourly pay that employers can legally give to workers.

Protected Health Information

Information about health status, provision of health care, or payment for health care that can be linked to an individual.

Employer Identification Number

A unique nine-digit number assigned by the IRS to businesses for purposes of identification and tax reporting.