What effect will this adjustment have on the accounting records?
A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) all of these are true

Question

What effect will this adjustment have on the accounting records? 
A) increase net income 
B) increase revenues reported for the period 
C) decrease liabilities 
D) all of these are true

Quizplus · Accepted Answer

Since we do not know the details of the adjustment, it is unclear exactly how it will affect the accounting records. However, all of the options presented (increase net income, increase revenues reported for the period, decrease liabilities) are plausible outcomes of an adjustment. Therefore, it is possible that all three statements could be true after the adjustment is made.

What Effect Will This Adjustment Have on the Accounting Records