The Accountant of Barnes Architectural Services Failed to Make an Adjusting

question 119

Multiple Choice

The accountant of Barnes Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is true?

• A)The total revenue will be overstated.
• B)The total revenue will be understated.
• C)The total expenses will be overstated.
• D)The total expenses will be understated.

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Definitions:

Inseparability of Services

Refers to the concept that services are produced and consumed at the same time, meaning the provider and the customer must be present for the transaction to occur.

Satisfaction Guarantees

A promise made by a company to refund or replace a product if a customer is not satisfied with the purchase, intended to reduce purchase risk and increase customer trust.

Heterogeneity

In marketing, it refers to the variability and diversity in services or products offered to meet the different needs and preferences of consumers.

Heterogeneity

The presence of variation and diversity within a population, group, or system, often requiring tailored approaches or solutions.