Which of the Following Statements About Adjustments Is Correct

question 56

Multiple Choice

Which of the following statements about adjustments is correct?

• A)An accrual adjustment that increases an asset will include an increase in an expense.
• B)A deferral adjustment that decreases an asset will include an increase in an expense.
• C)An accrual adjustment that increases an expense will include an increase in assets.
• D)A deferral adjustment that increases a contra-account will include an increase in an asset.

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a learned response following the cessation of reinforcement.

Reinforcement

In psychology, a process of encouraging or establishing a pattern of behavior by offering rewards or punishing unwanted behavior.

Punishment

The imposition of a penalty as a response to an undesired behavior, intended to discourage future occurrences of such behavior.

Negative Consequences

Results of a behavior that a person finds unattractive or aversive.