A Company Makes a Deferral Adjustment That Reduces a Liability

question 77

Multiple Choice

A company makes a deferral adjustment that reduces a liability.This must mean:

• A)an asset account is decreasing by the same amount.
• B)an expense account is increasing by the same amount.
• C)a revenue account is increasing by the same amount.
• D)a different liability account is decreasing by the same amount.

Understand the law of supply and how price influences quantity supplied.

Analyze the impact of technological advancements on supply.

Understand how changes in consumer preferences and population demographics affect demand.

Comprehend how market mechanisms (increase or decrease in the number of firms) affect supply.

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Definitions:

National Defense

The government activities, plans, and policies aimed at protecting a country's territory and citizens from external threats and maintaining overall security.

Externalities

Fiscal aftereffects that influence neutral individuals, having either favorable or adverse effects.

Cost

An amount that must be paid or spent to buy or obtain something, covering expenses such as manufacturing, labor, or materials.

Benefit

The advantage or profit gained from something, often used in the context of weighing costs against benefits in decision-making processes.