Which of the Following Will Occur If an Adjusting Entry

question 53

Multiple Choice

Which of the following will occur if an adjusting entry to record an accrued but unrecorded liability is NOT made?

• A) Both expenses and liabilities will be understated.
• B) Both expenses and liabilities will be overstated.
• C) Expenses will be understated, but liabilities will be overstated.
• D) Liabilities will be understated, but expenses will be overstated.

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Positive Feedback

A process in which the end products of an action cause more of the action to occur in a feedback loop, amplifying the original action.

Aspiration

A strong desire, longing, or ambition for achieving something.

Reinforced

Strengthened or emphasized, often in the context of behavior strengthened by rewards or positive outcomes.