The Entry to Adjust Salaries Was Done Twice

question 19

Multiple Choice

The entry to adjust salaries was done twice. This error would cause:

• A) assets to be understated.
• B) liabilities to be overstated.
• C) revenue to be understated.
• D) assets to be overstated.

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Definitions:

Common Stock

Shares representing ownership in a corporation, entitling the shareholder to a portion of the corporation's profits and a vote in shareholder meetings.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically coming with dividend priority.

Entitles

Grants or gives a right or a claim to something, often used in legal and financial contexts.

Investment Account

A financial account held by an investment dealer that a client uses to keep and trade investment securities.