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

question 205

Multiple Choice

At the end of the current year,the accountant for Computer Graphics Company 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.

---

Definitions:

Investment Strategy

A plan for allocating assets among various investment types to achieve specific financial goals, taking into account the investor's risk tolerance and time horizon.

Liabilities

Financial obligations or debts that a company or individual owes.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, as shown on the balance sheet.

Money Market Securities

Short-term debt instruments, typically issued by governments, financial institutions, and corporations, characterized by high liquidity and low risk.