If a Company Failed to Make the End-Of-Period Adjustment to Remove

question 210

Multiple Choice

If a company failed to make the end-of-period adjustment to remove from the Unearned Management Fees account the amount of management fees that were earned, this omission would cause:

• A) An overstatement of net income.
• B) An overstatement of assets.
• C) An overstatement of liabilities.
• D) An overstatement of equity.
• E) An understatement of liabilities.

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Definitions:

Self-Awareness

Perception of one’s self-identity, emotional experiences, incentives, and goals.

Irresponsible Behavior

Actions that show a lack of consideration for the consequences of one's actions, especially in regard to others' welfare and rights.

Deindividuated

A psychological state in which an individual loses self-awareness and a sense of individuality, often in group settings, leading to uncharacteristic behavior.

Accountable

Being responsible or answerable for actions or decisions, either in a personal or professional context.