Which one of the following adjustments increases net income for the period?
A) Recognition of the amount of supplies used.
B) Recognition of the revenue earned, but not yet received.
C) Recognition of the wages earned, but not paid to employees.
D) Recognition of rent costs that had been paid to the landlord in advance.

Question

Quizplus · Accepted Answer

Recognizing revenue earned but not yet received increases net income as it records income that has been earned during the period, even if cash has not yet been received.

Which One of the Following Adjustments Increases Net Income for the Period