When a Deferral Adjustment Is Made to an Asset Account,that

question 67

Multiple Choice

When a deferral adjustment is made to an asset account,that asset becomes a(n) :

• A) liability.
• B) other asset.
• C) revenue.
• D) expense.

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Definitions:

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another, with the understanding that the property will be returned.

Disclaimer of Liability

A statement that specifies or limits the extent to which a party can be held responsible for any damages or losses incurred.

Proprietor

An individual who owns and operates a business, holding sole responsibility and authority over its operations.

Notice

Formal communication or warning given in a prescribed manner by one party to another regarding actions, rights, or obligations.