A Company Made No Adjusting Entry for Accrued and Unpaid

question 137

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31.Which of the following statements is true?

• A)It will have no effect on income.
• B)It will overstate assets and liabilities by $9,000.
• C)It will understate net income by $9,000.
• D)It will understate assets by $9,000.
• E)It will understate expenses and overstate net income by $9,000.

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Definitions:

Performance Reviews

Evaluations conducted periodically to assess an employee's job performance, strengths, and areas for improvement.

Social Facilitation

The tendency for individuals to perform differently when in the presence of others, typically improving on simple tasks and doing poorly on complex tasks.

Energetic Performance

The level of vigor and enthusiasm displayed by individuals or groups in the execution of tasks.

Team Norm

Shared guidelines or rules of behavior that a team follows to increase efficiency and foster a positive environment.