If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

A) decreases the balance of an owner's equity account
B) increases the balance of a liability account
C) increases the balance of an asset account
D) decreases the balance of an expense account


B

Business

You might also like to view...

Identify at least four forces in the general environment of organizations and provide an example of each for an industry or business. How do these forces differ from the external stakeholders in the task environment?

What will be an ideal response?

Business

As long as each functional area in a company operates efficiently, their strategies can be very different

Indicate whether the statement is true or false.

Business

Improving quality seems to be a strategic weapon in gaining market share. However, improving quality entails allocation of resources and effort

As greater effort is expended to stop defects before they occur, which one of the following costs increases? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs

Business

Stars, one of the four business groups in the BCG matrix, are characterized by low growth and low market share.

Answer the following statement true (T) or false (F)

Business