Failure to Prepare an Adjustment at the End of the Period

question 117

Multiple Choice

Failure to prepare an adjustment at the end of the period to record an accrued expense would cause:

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

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Definitions:

Duty

An obligation often enforced by law, morality, or protocol, requiring individuals or entities to act or refrain from acting in certain ways.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior, with its precise definition being a matter of longstanding debate.

Citizens United

A landmark U.S. Supreme Court case that ruled the First Amendment prohibits government from restricting independent political expenditures by corporations and unions.