Which of the Following Will Happen If the Accrual Adjustment

question 93

Multiple Choice

Which of the following will happen if the accrual adjustment entry is not made to record expenses incurred but not yet recorded?

• A)Both expenses and liabilities will be overstated.
• B)Both expenses and liabilities will be understated.
• C)Expenses will be understated and liabilities will be overstated.
• D)Expenses will be overstated and liabilities will be understated.

---

Definitions:

Quality LMX Relationships

Refers to high-quality leader-member exchange relationships characterized by mutual respect, trust, and obligation between leaders and their subordinates.

Same Workgroup

Pertaining to employees or members who operate within the same team or department, sharing common tasks and objectives.

Transactional Leadership Behaviour

A style of management where leaders promote compliance by followers through both rewards and punishments.

Contingent Reward Behaviour

describes a leadership approach where the leader sets clear expectations and rewards followers for meeting those expectations.