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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Which of the Following Correctly Describes the Following Adjusting Journal