Failure to Prepare an Adjusting Entry at the End of the Period

question 77

Multiple Choice

Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause

• A) net income to be understated.
• B) an overstatement of assets and an overstatement of liabilities.
• C) an understatement of expenses and an understatement of liabilities.
• D) an overstatement of expenses and an overstatement of liabilities.

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Definitions:

Shelter

A structure that provides protection from the environment, including homes, buildings, and temporary accommodations.

Physiological Need

A basic bodily requirement that people need to survive, such as food, water, and shelter.

Maslow Hierarchy

A theory of human motivation depicted as a pyramid, with basic needs at the base ascending to self-actualization needs at the top.

Level Of Needs

The ranked priorities of needs that individuals strive to fulfill, often depicted in a hierarchical order, such as Maslow's hierarchy of needs.