If Aye Corp Fails to Adjust the Prepaid Rent Account

question 6

Multiple Choice

If Aye 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:

Workload

The amount of work assigned to or expected to be completed by an individual or team.

Work-Family Conflict

A form of inter-role conflict in which the demands of work and family roles are incompatible, causing stress.

Feedback

Information given to individuals or groups about their performance, intended to guide future improvements or maintain effective behaviors.

Advice

Guidance or recommendations offered with regard to prudent future action.