If the Effect of the Debit Portion of an Adjusting

question 26

Multiple Choice

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

• A) increases the balance of a revenue account
• B) decreases the balance of a liability account
• C) increases the balance of an expense account
• D) decreases the balance of a revenue account

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Definitions:

Expensive

Costing a lot of money; high priced.

Automation

The use of technology and machinery to perform tasks without significant human intervention, aimed at increasing efficiency, accuracy, and productivity.

Computer-controlled Machines

Machines and systems operated or controlled by computer-based algorithms, often used in manufacturing and production processes.

Manually Performed Tasks

Activities or operations that are executed by hand or physical effort without the aid of automated machinery or technology.