An Accountant Failed to Record the Adjusting Entry for Accrued

question 110

Multiple Choice

An accountant failed to record the adjusting entry for accrued revenues.How does this error affect the balance sheet?

• A)The assets at the end of the period will be overstated.
• B)The assets at the end of the period will be understated.
• C)The liabilities at the end of the period will be overstated.
• D)The liabilities at the end of the period will be understated.

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Definitions:

Sensitivity

The ability of a test to correctly identify those with the disease (true positive rate) or, in other contexts, the quality of being easily affected by external stimuli or emotions.

Diarrhea

A condition characterized by the frequent passing of loose or watery stools, often a symptom of infection or food intolerance.

Unformed Wastes

substances expelled from the body that have not been fully digested or absorbed, commonly referring to feces.

Jaundice

A medical condition characterized by yellowing of the skin and eyes due to elevated levels of bilirubin in the blood.