Which of the Following Types of Transactions Could Be an Accrual

question 60

Multiple Choice

Which of the following types of transactions could be an accrual adjustment?

• A) An increase to an asset account and an increase to a liability account
• B) An increase to a revenue account and an increase to an expense account
• C) An increase to a liability account and an increase to a revenue account
• D) An increase to an asset account and an increase to a revenue account

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Definitions:

Philanthropic

Relating to the act of giving money, goods, time, or effort to support a charitable cause, usually over an extended period and in regard to a defined objective.

Commercial

Relating to or engaged in commerce; characterized by the intent to profit from the buying, selling, or exchanging of goods and services.

Own Identity

The distinct characteristics, values, and beliefs that define an individual, group, or organization and differentiate it from others.

Nonprofit Organizations

Entities that operate for charitable, educational, or social purposes rather than for profit, reinvesting surplus revenues in their mission.