If the Effect of the Credit Portion of an Adjusting

question 125

Multiple Choice

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

• A) increases the balance of a contra asset account
• B) increases the balance of an asset account
• C) decreases the balance of a stockholders' equity account
• D) increases the balance of an expense account

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Definitions:

Conscious

Conscious refers to the awareness of the self, one's thoughts, feelings, and environment at any given time.

Strong Feelings

Intense emotional responses, which can range from joy, love, and excitement to anger, fear, and sadness.

Relevant Information

Data or facts that are pertinent and useful to the understanding, decision-making, or problem-solving process regarding a specific situation or subject.

Anthropodenial

The refusal to acknowledge human-like traits, emotions, or behaviors in non-human animals.