Which of the Following Transactions and Events Results in a Decrease

question 62

Multiple Choice

Which of the following transactions and events results in a decrease in both total assets and net income?

• A) The accrual of salaries 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.Adjusting prepaid rent for rent used during the period reduces the prepaid rent (asset) account and recognizes a rent expense. The rent expense decreases net income.

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