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 journal entries are made at the end of an accounting period to update the accounts according to accrual accounting principles. Since this adjusting journal entry is decreasing revenue (and therefore, net income), the answer is to decrease net income, which is option B.

What Effect Will This Adjusting Journal Entry Have on the Accounting