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If the Effect of the Credit Portion of an Adjusting

question 202

Multiple Choice

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


Definitions:

Limited Liability

A legal structure that shields owners' personal assets from the debts and liabilities of the business.

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are personally liable for its debts.

Consent

An agreement or permission given by an individual knowingly and freely without any form of coercion.

Limited Partners

Investors in a limited partnership who are not involved in day-to-day management and whose liability is limited to their investment.

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