Which of the Following Would Understate Net Income

question 245

Multiple Choice

Which of the following would understate net income?

• A)Failing to post an adjusting entry to accrue revenue.
• B)Understating the amount of Depreciation Expense recorded.
• C)Failing to prepare an adjusting entry to recognize the portion of prepaid rent that has expired.
• D)Overstating the year-end balance of the Supplies account.

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Definitions:

Democratic Election

A system of choosing leadership or making decisions within an organization through a process of voting by the membership or constituents in a fair and transparent manner.

Local Unions

Subdivisions of a national labor union that represent the interests of workers in specific geographic areas or industries.

Collective Bargaining

The process by which labor unions negotiate with employers on behalf of their members to establish employment terms such as wages, hours, and working conditions.

Equity

The principle of fairness and justice within the procedure, distribution of resources, or in interactions among members of a society or institution.