If an Adjusting Entry Is Not Made for an Accrued

question 139

Multiple Choice

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

• A) expenses will be overstated.
• B) liabilities will be understated.
• C) net income will be understated.
• D) equity will be understated.

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Definitions:

Sales Forecast

An estimation of the revenue that a company expects to receive from the sale of goods or services in a future period.

Marketing Concept

The philosophy of a business in which the wants and needs of customers are determined before goods and services are produced.

Competitive Advantage

A situation or factor that gives a business a dominant or advantageous position over its rivals.

Marketing Strategy

A comprehensive plan formulated by businesses to achieve specific marketing objectives and targets over a specific time period.