If a Company Forgets to Record the Journal Entry to Accrue

question 189

Multiple Choice

If a company forgets to record the journal entry to accrue interest expense,then its net income is too ________ and its liabilities are too ________.

• A)high;high
• B)low;high
• C)low;low
• D)high;low

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Definitions:

Statement Of Cash Flows

A financial statement showing the cash inflows and outflows for a business over a specific period, categorized into operating, investing, and financing activities.

Presentation Of Activities

Presentation of activities typically refers to the manner in which a company's or organization's actions and functions are organized, documented, and reported.

Operating

Pertaining to the day-to-day functioning and management of a business or enterprise, often related to producing or offering goods and services.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.