If a Company Failed to Make the End-Of-Period Adjustment to Move

question 29

Multiple Choice

If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account,this omission would cause:

• A)An overstatement of net income.
• B)An overstatement of assets.
• C)An overstatement of liabilities.
• D)An overstatement of equity.
• E)An understatement of liabilities.

---

Definitions:

Maturation

The process by which individuals grow and develop physically, emotionally, and intellectually over time, largely as a result of genetic programming.

Order

An arrangement or sequence of objects, tasks, or priorities characterized by organization.

Separation Anxiety

A disorder characterized by excessive fear or anxiety about being apart from attachment figures.

Infant

A very young child or baby, typically from birth until the age of one year.