If a Company Forgets to Record the Journal Entry to Accrue

question 189

Multiple Choice

If a company forgets to record the journal entry to accrue interest expense,then its net income is too ________ and its liabilities are too ________.

• A)high;high
• B)low;high
• C)low;low
• D)high;low

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Definitions:

Employee Stock Ownership Plan

A company-run program in which employees are given shares in the company as a part of their compensation, aiming to align employees' interests with the performance of the company.

Strategic Alliance

A partnership where two or more entities collaborate to pursue a set of agreed upon objectives while remaining independent organizations.

Public Offering

The process of selling shares of a private corporation to the public in a new stock issuance, allowing the company to raise capital from public investors.

Public Awareness

The extent to which the general public is informed about an issue, campaign, or brand.