The pre-adjustment net income for a company is $100,000. However, adjustments have not been made at the end of the period for accrued revenues of $2,700 and accrued expenses of $1,300. The correctly adjusted Net Income should be:

Question

Quizplus · Accepted Answer

The correctly adjusted Net Income is calculated by adding the accrued revenues ($2,700) and subtracting the accrued expenses ($1,300) from the pre-adjustment net income ($100,000). This results in $100,000 + $2,700 - $1,300 = $101,400.

The Pre-Adjustment Net Income for a Company Is $100,000