Which of the Following Would Be the Correct Adjustment If

question 16

Multiple Choice

Which of the following would be the correct adjustment if there was an increase in an accrual?

• A) The amount of the increase is included as an expense (a debit) on the income statement and the increase is added (credited) to the existing accrual in the statement of financial position
• B) The amount of the increase is deducted (credited) from the expense on the income statement and the increase is added (debited) to the existing accrual in the statement of financial position
• C) The amount of the increase is added (credited) to the expense on the income statement and the increase is deducted (debited) to the existing accrual in the statement of financial position
• D) None of the above statements are correct

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Definitions:

Problem-Solution

A method or strategy that identifies a problem and proposes one or more solutions to address or mitigate it, often used in product development and marketing.

Company Resource People

Individuals within an organization who possess specific knowledge, skills, or access to information essential for carrying out tasks and supporting colleagues.

Major Problem

A significant issue or challenge that requires attention and resolution.

Sales Presentation

A detailed explanation or demonstration of a product or service designed to persuade potential buyers to make a purchase.