Failure to Make an Adjusting Entry to Recognize Rent Revenue

question 74

Multiple Choice

Failure to make an adjusting entry to recognize rent revenue receivable would cause which of the following?

• A)An understatement of assets,net income,and stockholders' equity.
• B)An overstatement of assets and stockholders' equity and an understatement of net income.
• C)No effect on assets,liabilities,net income,or stockholders' equity.
• D)An overstatement of assets,net income,and stockholders' equity.

---

Definitions:

Consistency Motive

The inherent desire or drive within individuals to maintain uniformity and coherence among their beliefs, attitudes, and behaviors.

Self-Verification Motive

The drive to confirm one's self-concept by seeking out and interpreting information that aligns with one's existing beliefs about oneself.

Justification Motive

The psychological drive to rationalize one's actions, beliefs, or decisions, often to preserve self-esteem or avoid cognitive dissonance.

Appraisal Motive

The drive to understand oneself and others, assessing motivations, emotions, and behaviors for comprehension.