Which of the following transactions and events results in a decrease in both total assets and net income?
A)The accrual of wages expense at year-end.
B)Collecting cash from an account receivable.
C)Recognizing previously recorded deferred revenue as revenue.
D)Adjustment of the prepaid rent account for rent used during the period.

Question

Quizplus · Accepted Answer

The adjustment of the prepaid rent account for rent used during the period results in a decrease in total assets (prepaid rent account) and a decrease in net income (rent expense is recognized). The other options result in either no change or an increase in either total assets or net income.

Which of the Following Transactions and Events Results in a Decrease