On October 1 of the Current Year, a Company Received

question 180

Multiple Choice

On October 1 of the current year, a company received $4,800 for services to be performed evenly over the next four months. If no adjusting entry was made on December 31 of the current year:

• A) net income would be understated by $4,800.
• B) net income would be understated by $3,600.
• C) net income would be overstated by $1,200.
• D) net income would be overstated by $2,400.

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Definitions:

Social Institutions

Established sets of norms and structures that guide individual behavior and contribute to the organization of society, such as family, education, religion, and politics.

Contemporary Theories

Modern theories or ideas in a given field of study that reflect current thinking and developments, as opposed to older, more traditional theories.

Affect Theorist

A scholar who examines how emotions and affective experiences influence human behavior and social phenomena.

Social Life

Refers to the interactions, activities, and relationships that occur between individuals in societies, and how these form the basis of social structures and cultures.