A Company Made No Adjusting Entry for Accrued and Unpaid

question 90

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

• A) Overstate assets by $28,000.
• B) Have no effect on net income.
• C) Understate net income by $28,000.
• D) Overstate net income by $28,000.
• E) Understate assets by $28,000.

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Definitions:

Hard Evidence

Tangible, concrete proof or information that is clear, definitive, and unarguable, often used in legal and scientific contexts.

Ethical Standards

The principles that guide behavior in terms of right and wrong, often formalized in codes of conduct.

Ethical Principles

Fundamental norms that guide behavior and actions in a moral light, such as honesty, fairness, and integrity.

Specific Behavior

A particular or distinct action or pattern of actions exhibited by an individual or group.