If a Company Forgets to Make an Adjusting Entry Relating

question 129

Multiple Choice

If a company forgets to make an adjusting entry relating to a deferred revenue, which of the following would NOT be true?

• A)Liabilities would be overstated
• B)Revenues would be understated
• C)Retained earnings would be overstated
• D)Stockholders' Equity would be understated

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Definitions:

Task Repetition

The repeated execution of a particular task or set of tasks, often leading to efficiency improvements but sometimes resulting in boredom or strain.

Assembly Job

Employment that involves putting together components or parts, often in a manufacturing or production line setting.

Accident-Prone

A tendency to be more likely to experience accidents than the average person.

Optimistic

The tendency to see the positive side of things and expect the best possible outcome.