Stake,Inc.,records the payment of $200 cash for a previously accrued expense and the accrual of $625 for another expense.The impact of these two entries is to decrease net income by $825.

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The first entry, recording the payment of a previously accrued expense, would not decrease net income since the expense would have already been recognized in a prior period. The second entry, recording the accrual of a new expense, would decrease net income since it represents a new cost for the current period. Therefore, the impact of these two entries would be to decrease net income by $625, not $825.

Stake,Inc,Records the Payment of $200 Cash for a Previously Accrued