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

The adjustment will increase net income because it is adding to revenues for the period. Additionally, if the adjustment is decreasing liabilities, this will further increase net income. Therefore, all of these choices are true.

What Effect Will This Adjustment Have on the Accounting Records