Which of the Following Correctly Describes the Following Adjusting Journal

question 27

Multiple Choice

Which of the following correctly describes the following adjusting journal entry?

• A)Total assets do not change.
• B)The transaction is an example of an accrual.
• C)Stockholders' equity decreases.
• D)Net income is not affecteD.Accrued revenues are previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable account.

---

Definitions:

Budgeted Purchases

Estimated amounts allocated for the acquisition of goods or services during a specific budget period.

Inventory Levels

The quantity of goods and materials a company has in stock at any given time.

Sales Representatives

Individuals who represent a company's products or services and are responsible for extending its market reach by securing sales, clients, or contracts.

Selling Expenses

Costs incurred directly from the selling of products or services, including advertising, commission, and distribution costs.