If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,which of the following statements describes the effect of the debit portion of the entry?a. Increases the balance of a revenue account.b. Increases the balance of an expense account.c. Increases the balance of an asset account.

Question
Asked Nov 29, 2019
If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,
which of the following statements describes the effect of the debit portion of the entry?
a. Increases the balance of a revenue account.
b. Increases the balance of an expense account.
c. Increases the balance of an asset account.
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Expert Answer

Step 1

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

 

Step 2

The effect of the credit portion of an adjusting entry is to increase the balance of a liability account is "Increases the balance of an expense account"  this &nb...

Account titles and Explanation
Debit
Credit
Date
Expense
XX
XX
Accounts payable
(To record the expenses
incurred at the end of the
accounting period)
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Account titles and Explanation Debit Credit Date Expense XX XX Accounts payable (To record the expenses incurred at the end of the accounting period)

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