If the Adjusting Entry to Accrue Interest of $1,000 on a Note

question 213

Multiple Choice

If the adjusting entry to accrue interest of $1,000 on a note receivable is omitted,then:

• A)assets,net income,and stockholders' equity are overstated by $1,000.
• B)assets,net income,and stockholders' equity are understated by $1,000.
• C)liabilities are understated by $1,000,net income is overstated by $1000,and stockholders' equity is overstated by $1,000.
• D)assets are overstated,net income is understated,and stockholders' equity is understated.

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Definitions:

Teratogen

Any agent or substance that can cause malformation or gross structural abnormalities in a developing embryo or fetus.

Fetus

A developing mammal or human inside the womb from the end of the embryonic stage until birth.

Developmental Process

The sequence of biological, cognitive, and socioemotional changes that humans undergo from birth throughout their lives.

Distinct Stages

refers to the separate and clearly differentiated phases within a process or development.