If XYZ Corp

question 66

Multiple Choice

If XYZ Corp.fails to adjust the Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements?

• A)This will have no effect on the financial statements.
• B)Expenses will be overstated and profit and shareholders' equity will be understated.
• C)Assets will be overstated and profit and shareholders' equity will be understated.
• D)Assets will be overstated and profit and shareholders' equity will be overstated.

---

Definitions:

Leadership Behavior

Actions or attitudes exhibited by leaders, including decision-making, motivation, and communication with team members.

Top Executives

Individuals who occupy the highest-ranking positions within an organization, responsible for making overarching decisions.

Cooperation

The act of working together towards a common goal or objective, often involving shared efforts or resources.

Position Power

The authority and influence bestowed by an individual's role or position within an organization.