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

question 55

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 earned 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 earned that had been received in advance from customers

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Definitions:

Zero-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to zero; one party’s gain equals the other party’s loss. A strategic interaction (game) between two or more parties (players) in which the winners’ gains exactly offset the losers’ losses so that the gains and losses sum to zero.

Gains

Increases in financial resources or advantages, often resulting from investments or economic activities.

Repeated Games

A strategic scenario in which the same game or situation is played multiple times, allowing for strategy evolution based on past outcomes.

Simultaneous

Occurring, operating, or done at the same time.