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:

Control

In experimental research, the standard by which test results are compared, often a group that does not receive the experimental treatment.

Within-subject Design

A research design where the same participants are subjected to each condition of an experiment, allowing comparison of their performance across conditions.

Experimental Condition

In research, this is the set of conditions applied to subjects that is manipulated by the researcher to observe its effects compared to a control condition.

Random Assignment

A method of assigning research participants to different groups using randomization, ensuring that each participant has an equal chance of being placed in any group.