An Adjusting Entry Can Include a Debit to A(n)

question 151

Multiple Choice

An adjusting entry can include a debit to a(n)

• A)expense and a credit to an asset.
• B)cash and a credit to a revenue.
• C)liability and a credit to cash.
• D)liability and a credit to an asset.

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Definitions:

Statement of Financial Position

A financial report that provides a snapshot of an entity’s assets, liabilities, and equity at a specific point in time; also known as a balance sheet.

Non-current Debt

Long-term financial obligations or debts that are not due for payment within one year.

Financial Statements

Summarized records of a company's financial activities, presenting its financial position, performance, and cash flows over a certain period.

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer, not including interest or dividends.