Which of the Following Could Not Be an Adjusting Entry

question 68

Multiple Choice

Which of the following could not be an adjusting entry?

• A)An increase in an expense and a decrease in an asset
• B)A decrease in a liability and an increase in a revenue
• C)A decrease in a asset and a decrease in a liability
• D)An increase in an expense and an increase in a liability

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Definitions:

Flexible Exchange Rates

A foreign exchange system where the value of currencies is determined by market forces without direct government intervention.

Libras

A constellation in the zodiac, symbolized by the scales, or in a financial context, might be mistaken for "libra," which refers to a unit of weight or a former currency.

Freely Floating Exchange Rates

Exchange rates that are determined by the supply and demand for currencies in the foreign exchange market without direct intervention by countries' governments.

Imports

Goods or services brought into a country from abroad for sale, contrasted with exports, which are sent out of a country.