If a Company Failed to Make the End-Of-Period Adjustment to Move

question 29

Multiple Choice

If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account,this omission would cause:

• A)An overstatement of net income.
• B)An overstatement of assets.
• C)An overstatement of liabilities.
• D)An overstatement of equity.
• E)An understatement of liabilities.

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Definitions:

Classical Conditioning

The method by which repeated association of two stimuli results in a response that was initially elicited by the second stimulus being elicited by the first stimulus over time.

Neutral Stimulus

An initially neutral stimulus that doesn't trigger a specific reaction besides drawing attention, until it becomes linked with an unconditioned stimulus.

Conditioned Stimulus

An initially neutral cue that, upon repeated pairing with an unconditioned stimulus, produces a conditioned reaction.

Positive Reinforcement

A process in operant conditioning where introducing a rewarding stimulus following a desired behavior increases the likelihood of that behavior being repeated.