What effect will this adjusting journal entry have on the accounting records?
A) increase income
B) decrease net income
C) decrease expenses
D) increase assets

Question

What effect will this adjusting journal entry have on the accounting records? 
A) increase income 
B) decrease net income 
C) decrease expenses 
D) increase assets

Quizplus · Accepted Answer

Adjusting journal entries are made at the end of an accounting period to ensure that the financial statements reflect the correct amounts and are in compliance with accounting principles. If this adjusting entry results in a decrease in revenue or an increase in expenses, it will decrease net income. Therefore, the correct answer is B.

What Effect Will This Adjusting Journal Entry Have on the Accounting