Failure to Prepare an Adjusting Entry at the End of the Period

question 77

Multiple Choice

Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause

• A) net income to be understated.
• B) an overstatement of assets and an overstatement of liabilities.
• C) an understatement of expenses and an understatement of liabilities.
• D) an overstatement of expenses and an overstatement of liabilities.

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Definitions:

Active Listener

Someone who pays close attention to what is being said, demonstrating engagement and understanding through feedback, paraphrasing, and reflection.

Management's Decision

Refers to choices or judgments made by those with executive or administrative authority within an organization, influencing its direction and operations.

Feedback

Information provided regarding aspects of one’s performance or understanding, used as a basis for improvement.

Receiver

an entity that intercepts and processes messages or signals sent from a sender.