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:

R&D Activities

Research and Development activities involve investigative efforts companies undertake to innovate and introduce new products or services.

R&D Spending

Expenditures devoted to research and development in order to innovate, improve products, or discover new processes and technologies.

Rate of Return

A measure of the profitability of an investment, expressed as a percentage of the original investment.