Which One of the Following Statements Is NOT Correct

question 68

Multiple Choice

Which one of the following statements is NOT correct?

• A) Either an understatement of an asset account or an overstatement of a liability account would have the same effect on the income statement.
• B) A misclassification in the balance sheet will have no effect on operating income.
• C) Either an overstatement of an asset account or an understatement of a liability account would have the same effect on the income statement.
• D) Either an overstatement of an asset account or an overstatement of a liability account would have the same effect on the income statement.

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Definitions:

Lithium

A chemical element used as a medication to treat and prevent episodes of mania in people with bipolar disorder, acting to stabilize mood.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Antipsychotic Drugs

Medications used to manage psychosis, including severe mental disorders such as schizophrenia, by reducing or controlling symptoms like hallucinations and delusions.

Hopelessness

A state of despair characterized by a perceived lack of future prospects or personal efficacy.