A Company Forgot to Record Four Adjustments During the Current

question 166

Multiple Choice

A company forgot to record four adjustments during the current year. Which one of the following omissions of adjustments will understate net income?

• A)Sales made during the last week of the period are not recorded.
• B)Interest on monies borrowed has not yet been recorded.
• C)Prepaid insurance is not reduced for the portion of the policy that has expired during the period.
• D)Income taxes owed but not yet paid are ignored.

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Definitions:

Overall Intelligence

A general measure of a person's cognitive abilities and intellectual potential, often assessed through standardized IQ tests.

Eugenics Movement

A historical social movement aimed at improving the genetic quality of the human population through selective breeding.

Selective Breeding

The process of breeding plants and animals for particular genetic traits, aiming to produce offspring with desirable characteristics.

Highly Intelligent

Describes individuals who demonstrate significantly above-average capabilities in intellectual understanding, problem solving, and adapting to new situations.