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If the Effect of the Credit Portion of an Adjusting

Question 1

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) It increases the balance of a contra asset account.
B) It increases the balance of an asset account.
C) It decreases the balance of an asset account.
D) It increases the balance of an expense account.

Correct Answer:

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