Miss Happ of Ace Electronics Forgot to Make the Adjusting

question 100

Multiple Choice

Miss Happ of Ace Electronics forgot to make the adjusting entry for prepaid insurance that expired during the accounting period.As a result of this mistake ________.

• A)total liabilities are too low
• B)net income is too high
• C)net income is too low
• D)shareholders' equity is too low

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Definitions:

Direction

The course or path along which something moves, progresses, or points.

Strength

The quality or state of being physically strong, or the capacity for exertion or endurance, as well as a personal or collective attribute of resilience or capability.

Confidence Intervals

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Lower And Upper Limit

The minimum and maximum values in a set range, defining the bounds of a variable or measurement.