Which of the Following Transactions Results in an Increase in Both

question 86

Multiple Choice

Which of the following transactions results in an increase in both net income and stockholders' equity?

• A)Paying cash to acquire a six-month insurance policy.
• B)Collecting cash from a customer for services to be provided in the future.
• C)The accrual of interest expense year-end.
• D)Adjustment of the unearned revenue account for revenue earned during the perioD.Adjusting unearned revenue for revenue earned results in a credit to revenue and a debit to unearned revenue.This decreases liabilities and increases net income and stockholders' equity.

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Definitions:

Universal Instantiation

A logical rule used in proof theory that allows one to deduce a particular instance from a universally quantified statement.

Universal Generalization

A form of reasoning that infers a general rule from specific examples.

Quantifier Negation

This involves reversing the scope of a quantifier in a statement (e.g., from "all" to "not all") to negate the original statement.

Existential Generalization

A logical inference rule stating that if some predicate holds for at least one thing, then there exists something for which that predicate holds.