If the Effect of the Debit Portion of an Adjusting

question 187

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 debit portion of the entry?

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

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