What Effect Will This Adjustment Have on the Accounting Records

question 36

Multiple Choice

What effect will this adjustment have on the accounting records?

• A) Increase net income
• B) Increase revenues reported for the period
• C) Decrease liabilities
• D) All of these are true.

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Definitions:

National Saving

The total amount of savings generated within a country, calculated as the sum of private savings (by individuals and businesses) and public savings (government surplus), which is critical for funding investment.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Private Saving

The portion of an individual's or entity's income that is not spent on consumption or paid in taxes and is instead saved.

National Saving

The total amount saved within a country in a given time period, typically considered as the sum of private and public savings.