A Broadcasting Company Failed to Make a Year-End Accrual of $400,000

question 138

Multiple Choice

A broadcasting company failed to make a year-end accrual of $400,000 for fines due to a violation of FCC rules. Its tax rate is 30%. As a result of this error, net income was:

• A) Unaffected.
• B) Overstated by $400,000.
• C) Overstated by $280,000.
• D) Overstated by $120,000.

---

Definitions:

Assembly Line Balancing

The process of optimizing the allocation of tasks among workers or machines in an assembly line to minimize production time and avoid idle time.

Workstations

Specific work areas designed for completing particular tasks within a manufacturing process or office setting, often equipped with necessary tools and equipment.

Heuristic Rule

A practical method or guideline designed to solve problems faster than conventional methods, though not always with a perfect outcome.