What Effect Will the Following Adjusting Journal Entry Have on the Accounting

question 63

Multiple Choice

What effect will the following adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } \hline \text { Depreciation Expense } & 2,150 & \\\hline \text { Accumulated Depreciation } & & 2,150 \\\hline\end{array}$$

• A) increase net income
• B) increase revenues
• C) decrease expenses
• D) decrease net book value

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Definitions:

Contract Rate

The specific interest rate established in a lending or financial agreement, often determining the amount of interest a borrower will pay over the term of a contract.

Present Value

Today's monetary value of a forthcoming sum or series of cash flows, after considering a specified rate of return.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to account for the time value of money.

Future Cash Receipts

Expected incoming cash flows from business operations, investments, or other sources.