The Adjustment for Accrued Wages Was NOT Done;this Would Cause

question 87

Multiple Choice

The adjustment for accrued wages was NOT done;this would cause:

• A)liabilities to be overstated.
• B)liabilities to be understated.
• C)capital to be understated.
• D)net income to be understated.

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Definitions:

Partnership Activities

Activities involving two or more people or entities collaborating for a mutual goal, especially in a business context.

Salaries

Fixed regular payments made by employers to employees, typically expressed as an annual sum and paid in monthly or biweekly intervals.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenues.

Income and Losses

The total revenues gained minus the expenses and losses incurred by a business over a period, determining net profit or loss.