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:

Superego

A component of Sigmund Freud's personality theory that represents the ethical component, providing moral standards by which the ego operates.

Id

A component of the personality in Freud's psychoanalytic theory that is responsible for the instinctual and primitive behaviors.

Ego

In psychology, a part of the mind that mediates between conscious and unconscious thoughts, often tied to one's sense of self-esteem and identity.

Oedipus Complex

A psychoanalytic theory proposed by Freud that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.