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

question 163

Multiple Choice

What effect will the following adjusting journal entry have on the accounting records?

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

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Definitions:

Factory Labor

The workforce engaged in the manufacturing process within a factory, whose wages are considered a direct cost in the production of goods.

Selling and Administrative Expenses

Costs incurred that are not directly tied to the production of goods or services, such as salaries, rent, and advertising costs.

Manufacturing Overhead

All indirect costs associated with manufacturing, including costs related to production facilities and equipment maintenance.

Product Cost

The total expenses incurred to bring a product to market including materials, labor, and overhead costs.