What Are the Effects on the Accounting Equation from the Adjustment

question 171

Multiple Choice

What are the effects on the accounting equation from the adjustment for income tax expense accrued,but not paid,at the end of the accounting period?

• A)Total liabilities will decrease and total stockholders' equity will decrease.
• B)Total liabilities will increase and total stockholders' equity will decrease.
• C)Total liabilities will decrease and total stockholders' equity will increase.
• D)Total liabilities will increase and total stockholders' equity will increase.

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Definitions:

Japanese Yen

The official currency of Japan, symbolized as ¥ and known for its role in international trade and investment.

Dollar

The official currency of several countries, including the United States, often considered a benchmark and reserve currency worldwide.

Net Exports

The value of a country's total exports minus its total imports, representing the contribution of the trade balance to the overall GDP.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country.