Which of the Following Errors Would Most Likely Lead to an Overstatement

question 54

Multiple Choice

Which of the following errors would most likely lead to an overstatement of net income in the current year?

• A)Recording revenue when the cash is collected next year although it is earned in the current year.
• B)Recording an expense when paid next year although it is incurred this year.
• C)Failing to adjust the Unearned Rent Revenue account for the portion of rent earned this year.
• D)Recording revenue earned in the current year when cash is collected this year.

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Definitions:

Sensation Seeking

The trait of seeking varied, novel, complex, and intense sensations and experiences, often involving taking physical, social, legal, and financial risks.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing patterns of thought, emotion, and behavior.

Limited-Domain

Pertains to systems, especially in artificial intelligence, that are designed to operate within a narrowly defined or specialized area of knowledge or function.

Internal Locus

The belief that one has control over the events and outcomes in their life due to personal actions or characteristics.