If a Company Failed to Make the End-Of-Period Adjustment to Move

question 29

Multiple Choice

If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account,this omission would cause:

• A)An overstatement of net income.
• B)An overstatement of assets.
• C)An overstatement of liabilities.
• D)An overstatement of equity.
• E)An understatement of liabilities.

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Definitions:

Dysrhythmia

An irregularity in heart rhythm; also called arrhythmia.

Cardiac Output

The product of heart rate and stroke volume, measured in liters per minute; the amount of blood that is pumped by the heart in 1 minute.

Ventricular Fibrillation

A life-threatening heart rhythm that results in a rapid, erratic heartbeat, preventing the heart from pumping blood effectively.

Electrical Impulse

A rapid surge of electrical energy that travels through neurons, facilitating nerve signaling in the body.