Which of the following statements regarding types of adjusting entries is true?
A)An accrual adjustment that increases an asset will include an increase in an expense.
B)A deferral adjustment that decreases an asset will include an increase in an expense.
C)An accrual adjustment that increases an expense will include an increase in assets.
D)A deferral adjustment that increases a contra account will include an increase in an asset.

Question

Quizplus · Accepted Answer

A deferral adjustment that decreases an asset typically involves recognizing an expense, as it reflects the consumption of a prepaid asset over time.

Which of the Following Statements Regarding Types of Adjusting Entries