Net income would decrease as a result of which of the following adjustments:
A)Adjusting an unearned revenue account
B)Accruing a revenue
C)Accruing an expense
D)Billing a customer for services rendered

Question

Quizplus · Accepted Answer

Accruing an expense means recognizing an expense that has not yet been paid. This will decrease net income because expenses are deducted from revenues to calculate net income. The other options would either have no effect on net income (A and D) or increase net income (B).

Net Income Would Decrease as a Result of Which of the Following