Which of the Following Doesn't Correctly Describe a Journal Entry

question 60

Multiple Choice

Which of the following doesn't correctly describe a journal entry which debits rent expense and credits prepaid rent?

• A)It increases expenses and decreases retained earnings.
• B)It decreases net income and decreases assets.
• C)It increases expenses and decreases assets.
• D)It decreases net income and decreases liabilities.

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Definitions:

Embezzlers

Individuals who fraudulently appropriate funds or property entrusted to their care for their own use.

Borrowing

The act of obtaining something, especially money or goods, with the intention of returning it or its equivalent.

Stealing

The act of taking someone else's property without permission or legal right.

Tax Evasion

represents illegal practices to avoid paying taxes, typically by underreporting income, inflating deductions, or hiding money in undisclosed locations.