How Will the Following Adjusting Journal Entry Affect the Accounting

question 55

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:

Demonstrate

To show or prove something clearly through evidence or actions.

Threatening Impulses

Internal desires or drives that are perceived as dangerous or unacceptable, leading to anxiety or distress.

Defense Mechanism

Psychological strategies employed by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Reaction Formation

A defense mechanism where an individual behaves in a way opposite to their actual feelings or impulses, often to hide those feelings from themselves and others.