The Accrual of an Expense Was Not Recorded

question 115

Multiple Choice

The accrual of an expense was not recorded. This would:

• A) overstate assets and overstate liabilities.
• B) overstate expenses and understate liabilities.
• C) understate expenses and overstate liabilities.
• D) understate expenses and understate liabilities.

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Definitions:

Dodd-Frank Act

Formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, a comprehensive piece of financial reform legislation passed in 2010, aimed at reducing risks in the U.S. financial system.

Convictions

Firmly held beliefs or strong persuasions towards particular principles or courses of action.

Cause-Related Marketing

A marketing strategy wherein businesses align with social causes to generate business benefits and social impact simultaneously.