If a Required Accrued Expense Adjustment Had Not Been Made

question 45

Multiple Choice

If a required accrued expense adjustment had not been made, the financial statements would have been affected as follows:

• A)net income understated, assets overstated, liabilities unaffected, and owner's equity understated.
• B)net income overstated, assets unaffected, liabilities understated, and owner's equity overstated.
• C)net income understated, assets overstated, liabilities understated, and owner's equity unaffected.
• D)net income overstated, assets overstated, liabilities understated, and owner's equity overstated.

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Definitions:

Observational Learning

A learning process through watching the actions of others and the consequences that result from those actions.

Sensation Seeking

The personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense.

Genetic Factors

Elements within genes and chromosomes that influence traits, characteristics, and the likelihood of developing diseases or conditions.

Psychosocial Development

Erik Erikson's theory that personality develops in a predetermined order through eight stages of psychosocial development from infancy to adulthood.