The Adjusting Entry to Record an Accrued Revenue Is

question 220

Multiple Choice

The adjusting entry to record an accrued revenue is:

• A) Increase an expense; increase a liability.
• B) Increase an asset; increase revenue.
• C) Decrease a liability; increase revenue.
• D) Increase an expense; decrease an asset.
• E) Increase an expense; decrease a liability.

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Definitions:

Life Insurance

A type of insurance that protects people against the financial losses that occur with premature death.

Franchising

A business model that allows individuals to own and operate a branch of a larger company using its brand name, systems, and processes.

Start-Up Cost

Initial expenses required to establish a business, including equipment, permits, and marketing.

Absolute Control

A situation where all power and decisions rest with one entity or individual, without any external influences or checks.