A Company Forgot to Record Four Adjustments During 2015

question 235

Multiple Choice

A company forgot to record four adjustments during 2015. Which one of the following omissions of adjustments will overstate assets?

• A) Sales made during the last week of the period are not recorded
• B) Interest on monies borrowed has not yet been recorded
• C) Prepaid insurance is not reduced for the portion of the policy that has expired during the period
• D) Income taxes owed but not yet paid are ignored

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Definitions:

Trait Theories

Psychological theories that aim to describe personality in terms of identifiable patterns of behavior, thought, and emotion known as traits.

Psychodynamic Approaches

Psychological theories and therapies that focus on unconscious processes and childhood experiences in shaping behavior and personality.

Humanistic Approaches

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Unconscious Conflicts

Internal struggles, often stemming from childhood, that operate outside of an individual's conscious awareness, influencing behaviors and emotions.