Which One of the Following Adjustments Decreases Net Income for the Period

question 91

Multiple Choice

Which one of the following adjustments decreases net income for the period?

• A)Recognition of depreciation on plant assets
• B)Recognition of interest on a note receivable
• C)Recognition of services that had been provided to customers but the cash has not yet been received
• D)Recognition of rent as earned that had been received in advance from customers

Analyze the implications of debit and credit balances on the financial outcome.

Prepare basic components of financial statements: income statement, statement of owner's equity, and balance sheet.

Evaluate the need for adjusting certain accounts for financial reporting.

Understand the defining characteristics and differences between various organizational structures (divisional, network, matrix, functional).

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Definitions:

Sociocultural Environments

The societal and cultural factors that influence an organization's operations, including norms, values, customs, and demographics.

Opportunities

External factors or situations that can be leveraged by a business or organization to achieve its goals.

Threats

External factors or circumstances that could cause harm to an organization or project, often identified in a SWOT analysis.

Total Budget Competitors

Companies or entities competing within the same market that allocate similar amounts of financial resources towards their operations and marketing efforts.