A Company Made No Adjusting Entry for Accrued and Unpaid

question 181

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

• A) Understate net income by $28,000.
• B) Overstate net income by $28,000.
• C) Have no effect on net income.
• D) Overstate assets by $28,000.
• E) Understate assets by $28,000.

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Definitions:

Negative Feedback Loop

A regulatory mechanism in which a system responds in a way that reverses the direction of a change, helping to maintain stability or equilibrium.

Mathematical Models

Quantitative representations of real-world phenomena constructed using mathematical language and symbols to predict or analyze behavior and events.

Canadian Journal Of Zoology

A peer-reviewed scientific journal that publishes research in the field of zoology, particularly concerning animal biology.

Alternative Hypothesis

A statistical hypothesis that suggests there is a difference or relationship between two variables, as opposed to the null hypothesis, which suggests there is no effect or relationship.