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Which of the Following Correctly Describes the Following Adjusting Journal

Question 107

Multiple Choice

Which of the following correctly describes the following adjusting journal entry? Which of the following correctly describes the following adjusting journal entry?   A) Total assets decrease and net income decreases. B) Stockholders' equity decreases and liabilities increase. C) The transaction is an example of a deferral. D) Net income decreases and stockholders' equity does not change.


A) Total assets decrease and net income decreases.
B) Stockholders' equity decreases and liabilities increase.
C) The transaction is an example of a deferral.
D) Net income decreases and stockholders' equity does not change.

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