A Company Made No Adjusting Entry for Accrued and Unpaid

question 102

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31.Which of the following statements is true?

• A)It will have no effect on income.
• B)It will overstate assets and liabilities by $9,000.
• C)It will understate current-year net income by $9,000.
• D)It will understate assets by $9,000.
• E)It will understate current-year expenses and overstate current-year net income by $9,000.

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Definitions:

Piece Rate

A compensation system where employees are paid based on the quantity of units they produce or tasks they complete, encouraging productivity but potentially impacting job satisfaction and quality.

Specific High Learning Goal

A clearly defined objective aimed at achieving a significant level of knowledge or skill in a particular area.

Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives.

Weyerhaeuser Company

An American multinational forest products company, primarily engaged in the production of timber, manufacturing of wood products, and real estate development.