The Adjusting Entry Required When Amounts Previously Recorded as Deferred

question 74

Multiple Choice

The adjusting entry required when amounts previously recorded as deferred revenues are recognized includes:

• A) A debit to a liability.
• B) A debit to an asset.
• C) A credit to a liability.
• D) A credit to an asset.

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Definitions:

Services

Economic activities that produce intangible goods or benefits, such as healthcare, education, banking, and entertainment, as opposed to tangible physical products.

The Wheel

A revolutionary invention enabling easier transportation and movement of goods, significantly impacting human civilization.

Years Ago

A phrase used to indicate a specific amount of time in the past relative to the present.

Invention

The creation of a new device, process, or method, often something that has not existed before.