A Company Makes a Deferral Adjustment That Reduces a Liability

question 77

Multiple Choice

A company makes a deferral adjustment that reduces a liability.This must mean:

• A)an asset account is decreasing by the same amount.
• B)an expense account is increasing by the same amount.
• C)a revenue account is increasing by the same amount.
• D)a different liability account is decreasing by the same amount.

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Definitions:

Pure Land

A branch of Mahayana Buddhism focusing on the devotion to Amitabha Buddha, aiming for rebirth in his Pure Land, a place of bliss.

Ceramic Tile

A durable tile made from ceramic materials like clay, used for covering floors, walls, and other surfaces.

Horyuji

One of the oldest and most significant temples in Japan, known for its wooden architecture, ancient artifacts, and as a repository of Japanese art history.

Kondo

Japanese, “golden hall.” The main hall for worship in a Japanese Buddhist temple complex. The kondo contained statues of the Buddha and the bodhisattvas to whom the temple was dedicated.