What Effect Will This Adjusting Journal Entry Have on the Accounting

question 64

Multiple Choice

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

• A) increase income
• B) decrease net income
• C) decrease expenses
• D) increase assets

---

Definitions:

Accounting Report

A documented record of financial activities and the financial status of a business or entity, used for analysis and decision-making.

Equivalent Units

A concept used in cost accounting to convert the amount of work in process into a number of completed units of output.

Department's Output

The total amount of goods or services produced by a specific department within a given period.

Direct Materials

Components and primary raw inputs used in the creation of a product, identifiable as integral parts of the finished product.