At Year-End It Was Forgotten to Accrue a $2,000 Expense

question 35

Multiple Choice

At year-end it was forgotten to accrue a $2,000 expense. This will result in an:

• A) understatement of liabilities and an overstatement of profit and equity.
• B) understatement of assets, profit, and equity.
• C) overstatement of liabilities and an understatement of profit and equity.
• D) overstatement of assets, profit, and equity.

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms that involve the conversion of food to energy, the construction of proteins and nucleic acids, and the breakdown of waste products.

Fats

Nutrients that give energy, support cell growth, and help in the absorption of certain vitamins.

Niacin

A water-soluble B vitamin (B3) that is essential for energy metabolism and the health of the nervous system, skin, and digestive system.

GERD

Gastroesophageal Reflux Disease, a chronic condition where stomach acid flows back into the esophagus, causing heartburn and other symptoms.