A Company Made No Adjusting Entry for Accrued and Unpaid

question 181

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

• A) Understate net income by $28,000.
• B) Overstate net income by $28,000.
• C) Have no effect on net income.
• D) Overstate assets by $28,000.
• E) Understate assets by $28,000.

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College Educated

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Social Services

refer to a wide range of public or private services aimed at providing support, care, and assistance to individuals and communities in need.

Henry Ford

An American industrialist and the founder of Ford Motor Company, who revolutionized the automotive industry with the assembly line method of production, making cars affordable for the average American.

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