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 entries are made at the end of an accounting period to adjust the accounts for any items that were not recorded but should have been. An adjusting entry that decreases an expense account will decrease net income. Therefore, the correct answer is B) decrease net income. The other options, A) increase income, C) decrease expenses, and D) increase assets do not accurately describe the effect of this specific adjusting entry.

What Effect Will This Adjusting Journal Entry Have on the Accounting