GXC IncCommitted the Following Errors During 20x1,its First Year of Operations

question 52

Multiple Choice

GXC Inc.committed the following errors during 20x1,its first year of operations: Recorded $800 of interest expense as a debit to prepaid expense and a credit to cash.
GXC recorded $2,000 of unearned revenue as a debit to revenue receivable and a credit to revenues.
No adjusting entries were made related to these transaction entries.
The effect of these errors is as follows: 20x1:

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

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Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the decayed remains of plants and animals over millions of years.

Cellular Respiration

The metabolic process by which cells convert nutrients into energy (ATP), involving the consumption of oxygen and release of carbon dioxide.

Volcanic Activity

The process of magma rising from the Earth's interior, leading to volcanic eruptions that release lava, ash, and gases.

Diffusion

The movement of particles from an area of higher concentration to an area of lower concentration until they are evenly distributed.