A Company Made No Adjusting Entry for Accrued and Unpaid

question 137

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31.Which of the following statements is true?

• A)It will have no effect on income.
• B)It will overstate assets and liabilities by $9,000.
• C)It will understate net income by $9,000.
• D)It will understate assets by $9,000.
• E)It will understate expenses and overstate net income by $9,000.

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Definitions:

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The condition in which individuals are owned by others, who control where they live and at what they work, effectively denying them personal freedom.

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A term often associated with regional pride in the Southern United States, focusing on heritage, history, and cultural identity.

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