If a Company Fails to Make an Adjusting Entry for Accrued

question 69

True/False

If a company fails to make an adjusting entry for accrued revenues,the net income will be overstated.

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Definitions:

Payroll Register

A record that summarizes the wages, deductions, and net pay of all employees for each pay period.

Annual Earnings

The total amount of profit a company produces during a specific year.

Warranty Cost

Expenses associated with the repair, replacement, or refund for products within their warranty period.

Actual Warranty Costs

The real expenses incurred by a company to repair or replace products under warranty.