Which one of the following adjustments decreases net income for the period?
A)Recognition of depreciation on plant assets
B)Recognition of interest earned on a note receivable
C)Recognition of services that had been provided to customers but the cash has not yet been received
D)Recognition of rent earned that had been received in advance from customers

Question

Quizplus · Accepted Answer

Recognition of depreciation on plant assets reduces the value of the assets on the balance sheet and decreases net income for the period. The other choices either increase or have no effect on net income.

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