The Necessary Adjustment to Hubbard Transport's Accounting Records as of August

question 46

Multiple Choice

The necessary adjustment to Hubbard Transport's accounting records as of August 31 includes a net:

• A) Increase to Cash of $5,241.
• B) Increase to Cash of $3,240.
• C) Increase to Cash of $3,681.
• D) Decrease to Cash of $35.

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Definitions:

Savings Account

A bank account that earns interest and is typically used for holding money that is not intended for daily expenses.

Accumulated Amount

The total sum including the principal and the compounded interest over a period.

End-Of-Quarter Payments

Payments that are made at the conclusion of a fiscal quarter, often related to financial obligations such as loans or leases.

Annuity

A fiscal product designed to disburse a static sequence of payments to someone, chiefly utilized as a means for generating income during retirement.