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

question 64

Multiple Choice

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

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

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Definitions:

Informational Roles

The category of roles that involve collecting, processing, and disseminating information in the context of organizational leadership and management.

Manager's

A manager's role involves planning, organizing, leading, and controlling resources to achieve specific organizational goals.

Disseminator

A role in communication where information is distributed or spread widely among a group or organization.

Allocating Resources

The process of distributing resources, including time, money, equipment, and labor, among various projects or departments within an organization.