How to solve this? 6 Which of the following would be the correct adjustment if there was an increase in anaccrual?Select one:O a. None of the above statements are correcto b. The amount of the increase is added (credited) to the expense on the income statement and the increase isdeducted (debited) to the existing accrual in the balance sheetO c. The amount of the increase is included as an expense (a debit) on the income statement and the increase isadded (credited) to the existing accrual in the balance sheeto d. The amount of the increase is deducted (credited) from the expense on the income statement and the increaseis added (debited) to the existing accrual in the balance sheet

as per the accounting principal and practice ; Every DEBIT has an equal Credit. Every Debit are…

Answered: Which of the following would be the…

Business

Accounting

Which of the following would be the correct adjustment if there was an increase in an accrual?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

How to solve this? 6

Which of the following would be the correct adjustment if there was an increase in an
accrual?
Select one:
O a. None of the above statements are correct
o b. The amount of the increase is added (credited) to the expense on the income statement and the increase is
deducted (debited) to the existing accrual in the balance sheet
O c. The amount of the increase is included as an expense (a debit) on the income statement and the increase is
added (credited) to the existing accrual in the balance sheet
o d. The amount of the increase is deducted (credited) from the expense on the income statement and the increase
is added (debited) to the existing accrual in the balance sheet

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