Which of the Following Would NOT Be a Correct Form

question 45

Multiple Choice

Which of the following would NOT be a correct form for an adjusting entry?

• A) a debit to a revenue and a credit to a liability
• B) a debit to an expense and a credit to a liability
• C) a debit to a liability and a credit to a revenue
• D) a debit to an asset and a credit to a liability

---

Definitions:

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.

Sales Revenue

Income received from selling goods and services over a period of time.

Operating Activities

Encompasses the primary revenue-generating activities of an entity, including production, sales, and delivery of the company's products and services.

Cash Dividend

A distribution of profits by a company to its shareholders in the form of cash.