Which of the Following Entries Causes an Immediate Decrease in Assets

question 59

Multiple Choice

Which of the following entries causes an immediate decrease in assets and in profit?

• A) The entry to record depreciation expense.
• B) The entry to record revenue earned but not yet received.
• C) The entry to record the earned portion of rent received in advance.
• D) The entry to record accrued wages payable.

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Definitions:

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing.

Mental Models

Internal representations of reality that people use to understand and interact with the world.

Creative People

Individuals who have the ability to produce original ideas, solutions, or products.

High Intelligence

Refers to a significant level of cognitive capability, including abilities in logical reasoning, problem-solving, abstract thinking, understanding complex ideas, and learning quickly.