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

question 64

Multiple Choice

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

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

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Definitions:

Nutrients

Substances obtained from food that are essential for the maintenance of normal body functions, growth, and energy production.

Basilar Artery

A major blood vessel located at the base of the brain, supplying blood to the posterior part of the brain.

Cerebral Arterial Circle

Also known as the Circle of Willis, it is a ring-like arterial structure located at the base of the brain that ensures blood circulation even if part of it is blocked or narrowed.

Posterior Communicating Artery

A blood vessel that connects the internal carotid artery and the posterior cerebral artery at the base of the brain.