What Effect Will This Adjusting Journal Entry Have on the Accounting

question 3

Multiple Choice

What effect will this adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } \hline \text { Supplies Expense } & 760 & \\\hline \text { Supplies } & & 760 \\\hline\end{array}$$

• A) increase income
• B) decrease net income
• C) decrease expenses
• D) increase assets

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Definitions:

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Sell

The act of giving or handing over something in exchange for money or other compensation.

Premium

An amount paid regularly to insure something or to cover the cost of a policy, also used to describe the amount paid over the nominal value of something.

Bonds

Long-term debt securities issued by corporations and government entities that pay interest to the holder.