At the End of the Current Year, the Accountant for Computer

question 41

Multiple Choice

At the end of the current year, the accountant for Computer Graphics, Inc. forgot to make an adjusting entry to accrue Wages Payable for the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is an effect of this error?

• A) Net income is overstated.
• B) Liabilities are overstated.
• C) Net income is understated.
• D) Expenses are overstated.

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Definitions:

Psychopathology

A sickness or disorder of the mind.

Daily Functioning

The ability of an individual to perform normal daily activities, such as eating, bathing, dressing, paying bills, and socializing.

Social Practice

A pattern of behavior that is regularly and repeatedly performed in a society, and thus, becomes a societal norm.

Diathesis-stress Model

The Diathesis-stress Model is a psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.