Response to the following :
1. 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.
2. Does every adjusting entry have an effect on determin- ing the amount of net income for a period? Explain.
3. On November 1 of the current year, a business paid the November rent on the building that it occupies.
(a) Do the rights acquired at November 1 represent an asset or an expense?
(b) What is the justification for debiting Rent Expense at the time of payment?