At the End of the Fiscal Year, the Usual Adjusting

question 165

Multiple Choice

At the end of the fiscal year, the usual adjusting entry to recognize accrued revenues was omitted. Which of the following is true?

• A) total assets will be understated at the end of the current year
• B) the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year
• C) net income will be overstated for the current year
• D) total liabilities will be understated

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Definitions:

Routine Activity

A concept from criminology that suggests violence and property crimes occur when there is a motivated offender, a suitable target, and a lack of capable guardianship.

Cost-effectiveness

A measure that compares the relative costs and outcomes of different courses of action or decisions.

Reliance on Technology

The dependence of individuals, organizations, or societies on technology for operations, communication, and efficiency.

Cost-benefit Analysis

Cost-benefit analysis is a process used to evaluate the total anticipated cost of a project compared to the benefits in order to determine the best course of action.