The Accountant of Omega Consulting,Inc

question 105

Multiple Choice

The accountant of Omega Consulting,Inc.failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year.Assume the company initially recorded a liability.Which of the following statements is true?

• A)The total liabilities will be overstated.
• B)The total liabilities will be understated.
• C)The total assets will be overstated.
• D)The total assets will be understated.

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Definitions:

Mineral Oil

A colorless, odorless petroleum derivative used as a laxative or to soothe skin.

Diuretic Effect

Refers to the increased passage of urine caused by substances (diuretics) that help in the removal of fluid from the body.

Cranberry Juice

A liquid extracted from cranberries, often used for its health benefits, including urinary tract health.

Irritable Bowel Syndrome

A chronic disorder causing abdominal pain, bloating, and altered bowel habits, without underlying damage.