The Deferral Adjustment for Liabilities

question 85

Multiple Choice

The deferral adjustment for liabilities:

• A) records the amount of the asset used up during the period.
• B) records the amount of revenue earned for the period.
• C) increases a liability account.
• D) decreases an asset account.

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Definitions:

Fluid Wave

A physical examination technique used to detect the presence of significant amounts of fluid in the abdomen.

Hepatomegaly

An abnormal enlargement of the liver, which can be an indicator of various diseases or conditions.

Dullness

A lack of sharpness or vibrancy in sensation, often used in medical contexts to describe a type of sound heard during percussion of the body that suggests an underlying condition or abnormality.