At the End of the Fiscal Year, the Usual Adjusting

question 21

Multiple Choice

At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted.Which of the following statements is true?

• A)Salary Expense for the year is overstated.
• B)Liabilities at the end of the year are understated.
• C)Assets at the end of the year are understated.
• D)Shareholders' equity at the end of the year is understated.

---

Definitions:

Piloerection

It refers to the involuntary erection of hairs on the skin, caused by the contraction of tiny muscles at the base of hair follicles, often in response to cold or fear.

Hypothermia

A medical emergency condition where the body loses heat faster than it can produce heat, causing a dangerously low body temperature.

Restlessness

A condition of being unable to relax or remain still, often due to anxiety, discomfort, or other underlying health issues.

Cool Skin

A condition where the skin's temperature feels lower than normal, possibly indicating poor circulation or shock.