A Transaction Has Been Recorded in the General Journal of Deluty

question 92

Multiple Choice

A transaction has been recorded in the general journal of Deluty Company as follows:
$$\begin{array} { | l | r | r | } \hline \text { Unearned Reveruse } & 600 & \\\hline \text { Consulting Reverue } & & 600 \\\hline\end{array}$$
Which of the following describes the effect of this transaction on the company's financial statements?

• A) Increases Stockholders' Equity
• B) Increases Liabilities
• C) Decreases Assets
• D) Increases Assets

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Definitions:

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, causing someone to enter into a contract.

Real Estate

Property comprising land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Basement

The lowest floor of a building, typically below ground level.

Conversion

An unauthorized act that deprives an owner of personal property without their consent.