Which of the Following Will Happen If the Accrual Adjusting

question 117

Multiple Choice

Which of the following will happen if the accrual adjusting entry is not made for revenue earned but not yet recorded?

• A)Assets will be understated and revenues will be overstated.
• B)Revenues will be understated and assets will be overstated.
• C)Both revenues and assets will be overstated.
• D)Both revenues and assets will be understated.

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Definitions:

Systematic Desensitization

A therapeutic technique used to gradually reduce phobia or anxiety through controlled exposure to the fear-inducing object or situation, combined with relaxation exercises.

Incapacitated

Describes a state where an individual is unable to act or respond due to injury, illness, or other impediments.

Psychoanalysis

A therapeutic approach developed by Freud that aims to explore unconscious motivations and conflicts through techniques like free association and dream interpretation.

Client-centered Therapy

A therapeutic approach that emphasizes providing a supportive emotional environment where clients can lead their own process of self-discovery and personal growth.