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 used to update accounts to reflect transactions that have occurred but for which no entry has been made. In this case, the adjusting entry decreases an expense account, which means it will decrease net income.

What Effect Will This Adjusting Journal Entry Have on the Accounting