When Paying Off a Note Payable,last Year's Accrual Was Ignored

question 101

Multiple Choice

When paying off a note payable,last year's accrual was ignored and the total interest was recorded as an expense.This error would cause:

• A)the period end assets to be understated.
• B)the period end liabilities to be understated.
• C)the period's net income to be understated.
• D)the period's net income to be overstated.

---

Definitions:

Morphemes

The smallest meaningful units of language that convey specific semantic meaning, which can be words or parts of words.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another in the language.

Morpheme

The smallest grammatical unit in a language, unable to be further divided without altering or losing its meaning.

Prefix

A prefix is a group of letters placed before the root of a word to modify its meaning.