At the End of the Current Year,the Accountant for Navistar

question 137

Multiple Choice

At the end of the current year,the accountant for Navistar Graphics forgot to make an adjusting entry to accrue Wages payable to the company's employees for the last week in December.The wages will be paid to the employees in January.Which of the following is one of the effects of this error?

• A) Net income is overstated.
• B) Liabilities are overstated.
• C) Net income is understated.
• D) Expenses are overstated.

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Definitions:

Poisson Distribution

A probability distribution that expresses the likelihood of a given number of events occurring in a fixed interval of time or space.

Normal Distribution

A type of continuous probability distribution for a real-valued random variable, characterized by a symmetric bell-shaped curve.

Binomial Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given set of parameters.

Random Variable

A random variable is a variable whose possible values are numerical outcomes of a random phenomenon.