A Tired Accountant Failed to Record the Adjusting Entry for Accrued

question 144

Multiple Choice

A tired accountant failed to record the adjusting entry for accrued revenues.How does this error affect the balance sheet?

• A)The assets for the period will be overstated.
• B)The assets for the period will be understated.
• C)The liabilities for the period will be overstated.
• D)The liabilities for the period will be understated.

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Definitions:

Mucus Neck Cells

Specialized cells in the stomach that produce mucus to protect the lining of the stomach from acidic gastric juice.

Adventitia

The outermost layer of the wall of a blood vessel or other organ, consisting mainly of connective tissue, providing structural support and protection.

Serosa

The outermost layer of tissue that envelops some internal organs, part of the lining of the body cavities and a structure involved in protection and secretion.

Submucosa

A layer of tissue beneath the mucosa, containing blood vessels, nerves, and lymphatics, supporting the mucosa.