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:

Oysters

Marine mollusks that live in marine or brackish habitats, known for their edible, calcium-rich shells and being a delicacy in many parts of the world.

Indeterminate

Indeterminate is a term used to describe a situation or outcome that is not clearly defined or decided, leading to uncertainty.

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.

Marginal Utility

The boost in contentment or usefulness a consumer gets from purchasing one more unit of a product or service.