If the Effect of the Debit Portion of an Adjusting

question 174

Multiple Choice

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

• A) decreases the balance of an owner's equity account
• B) increases the balance of a liability account
• C) increases the balance of an asset account
• D) decreases the balance of an expense account

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Definitions:

Chemical Reactions

Processes that involve the rearrangement of molecular or ionic structure of substances, resulting in new products.

Temperature

A measure of the average kinetic energy of the particles in a system, reflecting the system's thermal state or degree of heat.

Catalysts

Substances that increase the rate of chemical reactions without being consumed in the process.

Enzymes

Biomolecules that substantially increase the pace of nearly all chemical processes happening within cellular structures.