The Accrual of an Expense Was Not Recorded

question 115

Multiple Choice

The accrual of an expense was not recorded. This would:

• A) overstate assets and overstate liabilities.
• B) overstate expenses and understate liabilities.
• C) understate expenses and overstate liabilities.
• D) understate expenses and understate liabilities.

---

Definitions:

Ethical Intensity

Refers to the perceived importance or moral significance of an ethical issue, affecting how it is recognized, considered, and acted upon by individuals.

Magnitude of Consequences

The significance or impact of the outcomes resulting from a decision or action, considering both its positive and negative aspects.

Social Consensus

Agreement within a group or society on beliefs, values, or social norms.

Self-Serving Decisions

Decisions made with the primary goal of benefiting oneself, often at the expense of others or the common good.