Which of the Following Adjustments Increases Net Income for the Period

question 101

Multiple Choice

Which of the following adjustments increases net income for the period?

• A) recognition of the amount of supplies used
• B) recognition of revenue earned, but not recorded
• C) recognition of wages earned, but not paid to employees
• D) recognition of rent costs paid to the landlord in advance

---

Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold; countries agree to convert currency into a fixed amount of gold.

Fixed Exchange-Rate

A regime under which the government or central bank ties the official exchange rate to another country's currency or the price of gold.

Capital Account

A national account that shows the net change in asset ownership for a country. It includes foreign investments and loans.

Financial Account

A component of the balance of payments that records transactions of financial assets between residents of one country and the rest of the world.