If the Effect of the Debit Portion of an Adjusting

question 29

Multiple Choice

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

• A) decreases the balance of a stockholders' equity account
• B) increases the balance of a liability account
• C) increases the balance of an asset account
• D) decreases the balance of an expense account

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Definitions:

Rotary International

An international service organization that brings together business and professional leaders to provide humanitarian service and to advance goodwill and peace around the world.

Circulatory System

Organ system consisting of a heart or hearts and vessels that distribute circulatory fluid through a body.

Tracheal Tubes

A system of air-filled tubes in insects and some other arthropods that allow for gas exchange directly with body cells.

Spiracles

Small openings found on the surface of some animals, such as insects and spiders, that lead to their respiratory systems.