The Year-End Adjusting Entry to Recognize Uncollectible Accounts Expense Will

question 42

Multiple Choice

The year-end adjusting entry to recognize uncollectible accounts expense will

• A)decrease assets and decrease equity.
• B)increase assets and decrease equity.
• C)increase liabilities and increase equity.
• D)decrease liabilities and increase equity.

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Definitions:

Debit

An entry recorded on the left side of an account ledger, representing an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.

Balance Sheet Accounts

Accounts that reflect the assets, liabilities, and shareholders' equity of a company at a particular point in time.

Real Accounts

Accounts related to assets, liabilities, and equity that are not closed at the end of the accounting period, as opposed to nominal accounts.