What Effect Does an Accrued Revenue Adjustment Have on a Company's

question 63

Multiple Choice

What effect does an accrued revenue adjustment have on a company's net income?

• A)The adjustment has no effect on net income.
• B)The adjustment increases net income for the period.
• C)The adjustment decreases net income for the period.
• D)The effect of the adjustment cannot be determined with the information given.

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Definitions:

Employment

The relationship between an employer and an employee where the employee performs work under certain conditions in exchange for remuneration.

Enforced

refers to the act of compelling compliance or obedience to a law, rule, or obligation.

Minor

A minor is an individual who is under the legal age of majority, usually considered to be below 18 years old, and is, therefore, legally restricted in certain rights and responsibilities.

Fraud

An intentional deception made for personal gain or to damage another individual.