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.

---

Definitions:

Union Organizing

The process by which workers come together to form a union in order to collectively bargain for better conditions and wages.

AFL and CIO Split

The historical division between the American Federation of Labor and the Congress of Industrial Organizations, two major US labor unions.

Craft Lines

Work fields or professions that emphasize skilled manual labor and specialized craftsmanship in producing goods.

Industry Lines

Distinctions that categorize the varied types of business activities based on their main production processes or the sector they belong to.