Mattox Corporation Had an Unadjusted Balance of $5,000 in Supplies

question 127

Multiple Choice

Mattox Corporation had an unadjusted balance of $5,000 in Supplies. The actual balance was $190. The accountant failed to make the adjusting entry. What is the effect on the current year financial statements?

• A) Net income is understated by $4,810.
• B) Current assets are overstated by $4,810.
• C) Current assets are understated by $5,000.
• D) Retained Earnings is overstated by $5,000.

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Definitions:

Hepatitis A

A highly contagious viral infection of the liver caused by the hepatitis A virus, typically transmitted through ingestion of contaminated food or water.

Vehicle Borne-Transmission

The spread of disease through vehicles, such as cars or buses, which can act as a medium for transporting pathogens.

Chain Of Infection

A process that describes how an infectious disease is transmitted from one host to another through a series of stages.

Large Bowels

The final section of the digestive system, involved in water absorption and waste formation, also known as the colon.