Which of the Following Does Not Correctly Describe the Following

question 126

Multiple Choice

Which of the following does not correctly describe the following journal entry?

• A)Total assets do not change.
• B)The transaction is an example of a deferral.
• C)Stockholders' equity decreases.
• D)Net income is not affecteD.This journal entry increases and decreases two different asset accounts; there is no impact on stockholders' equity.

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Definitions:

Acronym

An abbreviation formed from the initial letters of other words and pronounced as a word.

Ecosystem

A community of living organisms and their physical environment interacting as an integrated system.

Sporting Trophy

is an award, typically in the form of a cup or statue, given for achievement in a specific sport or competition.

Tourist Attraction

A place of interest where tourists visit, typically for its inherent or exhibited cultural value, historical significance, natural or built beauty.