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.

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Definitions:

New Classical Economists

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A branch of philosophy focused on discussing and analyzing various views about who should rule, the nature of just governance, and the role of citizens in a state.

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