Asked by
Maggie Erpelding
on Oct 28, 2024
Verified
Which of the following does not correctly describe the following journal entry? 
A) Total assets do not change.
B) The transaction is an example of a deferral.
C) Stockholders' equity decreases.
D) Net income is not affected.
Deferral
Accounting method to postpone the recognition of revenues or expenses until a future accounting period.
Journal Entry
A record in the accounting ledger that represents a transaction and its effect on various accounts, used for tracking and organizing financial data.
- Recognize the significance of deferrals and accruals in the context of adjusting entries.
Verified Answer
GR
Learning Objectives
- Recognize the significance of deferrals and accruals in the context of adjusting entries.
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