If an Adjusting Entry Is Not Made for an Accrued

question 220

Multiple Choice

If an adjusting entry is not made for an accrued revenue,

• A) assets will be overstated.
• B) expenses will be understated.
• C) equity will be understated.
• D) revenues will be overstated.

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Definitions:

College Students

Individuals enrolled in an institution of higher learning to pursue a degree or certification.

Macroeconomics

The branch of economics that focuses on the behavior, performance, structure, and decision-making of an economy as a whole, rather than individual markets.

Large Aggregates

Broad categories or totals in economic data that combine several individual elements, such as national income, GDP, or total employment.

Economy as a Whole

A broad view of all the economic activities and transactions in a country or region, encompassing consumer, business, and government spending, investments, and trade balance.