If Income Earned Is Not Accrued at the End of the Accounting

question 7

Multiple Choice

If income earned is not accrued at the end of the accounting period,the result will be an

• A)Understatement in liabilities and an overstatement in profit
• B)Overstatement in liabilities and an understatement in profit
• C)Overstatement in assets and profit
• D)Understatement in assets and profit

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Definitions:

NEMA Motor

An electric motor manufactured to meet standards set by the National Electrical Manufacturers Association, ensuring compatibility and performance specifications.

General Purpose

Designed for a wide range of activities or uses rather than specialized purposes.

Power

The rate at which electrical energy is transferred by an electric circuit.