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Which of the Following Accounts Could Not Be Credited in an Adjusting

question 208

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Which of the following accounts could not be credited in an adjusting entry?


Definitions:

Dividends

Distributions of a portion of a company's earnings decided by the board of directors to its shareholders.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is kept back in the business for reinvestment or to pay off debt.

Equity Financing

The method of raising capital by selling company shares to investors; in return, investors receive ownership interests in the company.

Capital Gains

The increase in value of an asset or investment above its purchase price, realized upon the sale of the asset.

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