Question: 1. If the effect of an adjustment is to increase the balance of a liability account, which of the following statements describes the effect of the adjustment on the other account?
a. Increases the balance of a revenue account.
b. Increases the balance of an expense account.
c. Increases the balance of an asset account.
3. Describe the nature of the assets that compose the following sections of a balance sheet:
(a) current assets,
(b) property, plant, and equipment.