At the End of the Fiscal Year the Usual Adjustment

question 103

Multiple Choice

At the end of the fiscal year the usual adjustment for accrued salaries owed to employees was omitted.Which of the following statements is true?

• A)Salaries and Wages Expense for the year is overstated.
• B)Liabilities at the end of the year are understated.
• C)Assets at the end of the year are understated.
• D)Stockholders' equity at the end of the year is understated.

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Definitions:

Future Costs

These are costs expected to be incurred in the future as a result of current or future actions.

Alternatives

Different options or strategies available for achieving a specific goal or solving a problem.

Relevant

Pertinent or directly connected to the matter at hand, especially in the context of decision-making where only factors that affect the decision are considered.

Avoidable Cost

Expenses that can be eliminated if a particular decision is made or if a business operation is discontinued.