Which of the Following Would Have an Unfavorable Effect on Net

question 19

Multiple Choice

Which of the following would have an unfavorable effect on net income?

• A)Omission of an adjusting entry to accrue revenue.
• B)Understating the amount of depreciation recorded.
• C)Failure to record the portion of prepaid rent that has expired.
• D)Overstating the year-end count of supplies.

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Definitions:

Writing

The act or process of producing and recording words in a form that can be read and understood; typically involves the use of a pen, pencil, or keyboard.

Bailee

A person or entity to whom goods are entrusted for a specific purpose by the bailor, who owns the goods.

Private Property

An ownership model where the possession of land, resources, or items is vested in individuals or organizations, distinct from public or state ownership.

Will

A document executed with specific legal formalities that contains a person’s instructions about the disposition of his property at his death.