It Is the Year End, but Not the Pay Period

question 26

Multiple Choice

It is the year end, but not the pay period end. How will this affect the balance sheet?

• A) Assets will be decreased.
• B) Liabilities will be increased.
• C) Owner's equity will be increased.
• D) Net Income will be increased.

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Definitions:

Presumptions

Beliefs taken as true without requiring proof, often legally assumed facts until disproven.

Copyright

A type of intellectual property protection that grants the creator exclusive rights to use, reproduce, and distribute their original works.

Equitable Estoppel

The principle that when a gratuitous promise to do something in the future causes a person who relies on that promise to incur an expense, the promisor will not be allowed to enforce other contractual rights that are inconsistent with that promise; the promise can only be used as a defense by the promisee; also known as promissory estoppel.

Natural Person

An individual human being, as opposed to a legal entity like a corporation or government.