What Is the Impact of Overstating an Accrued Expense During

question 119

Multiple Choice

What is the impact of overstating an accrued expense during the 2013 fiscal year?

• A)There is no effect on 2013 income.
• B)Net income for 2013 will be overstated.
• C)Current liabilities for 2013 will be understated.
• D)Ending retained earnings for 2013 will be understated.

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Definitions:

Acidity

A measure of a substance's ability to donate a proton or accept an electron pair in reactions, commonly associated with pH in aqueous solutions.

Stronger Base

A species with a greater tendency to accept protons compared to another base, often characterized by its higher basicity constant (Kb).

Conjugate Acid

The species formed when a base gains a proton (H+), characterized by the presence of an additional hydrogen compared to the original base.

Conjugate Base

The species that remains after an acid has donated a proton during a chemical reaction.