Solarcompanyhasaone-monthaccountingperiod.OnMarch31,anadjustingentryrecordedMarchsalaryexpensethatwillbepaidinApril.WhichstatementsbestdescribestheeffectofthisadjustingentryonSolar’saccountingequation?
A. assetsarenotaffected,liabilitiesareincreased,andstockholders’equityisincreased
B. assetsaredecreased,liabilitiesareincreased,andstockholders’equityisdecreased
C. assetsarenotaffected,liabilitiesareincreased,andstockholders’equityisdecreased.
D. assetsaredecreased,liabilitiesarenotaffected,andstockholders’equityisdecreased.
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______accountingrecordstheimpactofabusinesstransactionasitoccurs,evenifthebusinessreceivesorpaysnocash.
_____accountingrecordsonlycashtransasctions (cashreceiptsandcashpayments).
The_____principledealswithtwoissues:
A_____isanadjustmentforpaymentofanitemorreceiptofcashinadvance.