How Will the Following Adjusting Journal Entry Affect the Accounting

question 44

Multiple Choice

How will the following adjusting journal entry affect the accounting equation?

• A)increase assets,increase revenues
• B)increase liabilities,increase revenues
• C)decrease liabilities,increase revenues
• D)decrease liabilities,decrease revenues

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Definitions:

Firm Offer

A proposal in business transactions that remains valid for a specified period and cannot be revoked during that time.

Merchant

An individual or business engaged in the wholesale or retail trading of goods and services, traditionally involved in buying and selling with the aim of earning a profit.

Goods of the Kinds

Products or items that are characteristic of what is described in a contract, conforming to expectations based on trade and usage.

Machinery on Approval

A sales agreement condition where the buyer can return the machinery if it doesn't meet specified requirements or expectations.