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

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

Quizplus · Accepted Answer

Since the adjustment is not specific, it could have an impact on either revenues or liabilities. The adjustment could be related to an increase in revenue, which would increase net income and revenues reported for the period. Alternatively, the adjustment could be related to a decrease in liabilities, which would decrease liabilities and increase net income. Therefore, all of these options are possible outcomes of the adjustment.

What Effect Will This Adjustment Have on the Accounting Records