At the End of the Financial Year, the Usual Adjusting

question 26

Multiple Choice

At the end of the financial year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?

• A) Salary expense for the year was overstated.
• B) The total of the liabilities at the end of the year was overstated.
• C) Net profit for the year was understated.
• D) Retained profit at the end of the year was overstated.

---

Definitions:

Hydrostatic Pressure

The pressure exerted by a fluid at equilibrium due to the force of gravity.

Glomerular Filtration Membrane

A specialized filter in the kidney, consisting of capillary networks, that allows the passage of water and small solutes into the nephron while retaining larger molecules.

Urinalysis

A test of urine to detect and manage a wide range of disorders such as urinary tract infections, kidney disease, and diabetes.