How Will the Following Adjusting Journal Entry Affect the Accounting

question 167

Multiple Choice

How will the following adjusting journal entry affect the accounting equation?

• A) Increase assets, increase revenues
• B) Increase liabilities, increase revenues
• C) Decrease liabilities, increase revenues
• D) Decrease liabilities, decrease revenues

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Repression

A defense mechanism in psychoanalytic theory where unpleasant or traumatic memories are unconsciously excluded from conscious thought.

Decay

The process of gradual deterioration or the breakdown of organic matter, or, in terms of memory, the fading of information over time when it is not actively maintained or rehearsed.

Retrieval

The process of getting information out of memory storage and back into conscious awareness.