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

question 37

Multiple Choice

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

• A)Recognition of the amount of supplies used
• B)Recognition of interest on a note receivable
• C)Recognition of wages earned,but not paid to employees
• D)Recognition of rent costs that had been paid to the landlord in advance

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, which may differ from its market value.

Entity

An organization or being with a distinct and independent existence, usually referred to in legal, financial, or tax contexts.

No-Par Value Stock

Capital stock that has not been assigned a value in the corporate charter.

Legal Capital

The minimum amount of capital that a corporation is required to maintain, as mandated by corporate laws, to protect creditors.