The Accountant of Omega Consulting Failed to Make an Adjusting

question 109

Multiple Choice

The accountant of Omega Consulting failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year.Assume the company initially recorded a liability.Which of the following statements is true?

• A)The total liabilities will be overstated.
• B)The total liabilities will be understated.
• C)The total assets will be overstated.
• D)The total assets will be understated.

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Definitions:

Morally Permissible

An action or choice that is deemed acceptable or right according to moral principles or standards.

Capable of Rational Behavior

Refers to the ability of an individual to make reasoned decisions based on logic and reasoning.

Emotional

Relating to one's feelings or emotions, often implicating the capacity to experience and respond to feelings both internally and in interaction with others.

Moral Dilemmas

Situations in which a difficult choice has to be made between two or more actions, each of which has morally significant consequences.