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If the Effect of the Credit Portion of an Adjusting

Question 3

Multiple Choice

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


A) Increases the balance of a revenue
B) Increases the balance of an asset account
C) Decreases the balance of an asset account
D) Increases the balance of an expense account

Correct Answer:

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