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What Is the Effect on Account Balances When an Adjusting

Question 34

Multiple Choice

What is the effect on account balances when an adjusting entry to record an unrecorded receivable is made?


A) Both revenues and assets will be increased.
B) Both revenues and assets will be decreased.
C) Revenues will be increased, but assets will be decreased.
D) Assets will be increased, but revenues will be decreased.

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