A Deferral Adjusting Entry That Adjusts Assets (Such as Prepaids

question 41

Multiple Choice

A deferral adjusting entry that adjusts assets (such as prepaids and supplies) :

• A)decreases total assets because cash is paid at the time of the adjustment.
• B)expenses the amount used during the period.
• C)increases total assets because costs are incurred.
• D)increases total assets because cash will be received in the future.

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Definitions:

Contractual Capacity

The legal ability of a person to enter into a binding contract.

Promissory Estoppel

A law-based concept stopping a person from denying a vow made to another when the second party has legitimately acted on that vow to their detriment.

Article 2

Article 2 often refers to a specific section within a larger legal document or code, such as the Uniform Commercial Code in the United States, which deals with the sale of goods.

UCC

The Uniform Commercial Code represents a detailed collection of regulations that oversee every commercial transaction within the United States.