How Do Deferral Adjustments for Prepaid Expenses-Such as Rent -That

question 90

Multiple Choice

How do deferral adjustments for prepaid expenses-such as rent -that were initially recorded as assets affect assets on the balance sheet and expenses on the income statement?

• A) Deferral adjustments increase assets and increase expenses.
• B) Deferral adjustments increase assets and decrease expenses.
• C) Deferral adjustments decrease assets and decrease expenses.
• D) Deferral adjustments decrease assets and increase expenses.

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