If a Company Fails to Make an Adjusting Entry to Record

question 184

Multiple Choice

If a company fails to make an adjusting entry to record supplies expense, then

• A) stockholders' equity will be understated.
• B) expense will be understated.
• C) assets will be understated.
• D) net income will be understated.

---

Definitions:

Supervisory Policies

Guidelines and rules established by people in managerial or supervisory positions that govern the actions and behaviors of employees within an organization.

Role Expectations

The behaviors, responsibilities, and norms that are assumed to be appropriate or necessary for a particular position or status within a social group or organization.

Incompatible

Unable to exist or work together in harmony due to differences in characteristics, objectives, or properties.

Cohesive Work Groups

Teams whose members work well together, creating a unified and supportive environment that fosters productivity and positive relations.