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.

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Definitions:

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, and behaviors that cause distress or significant problems.

Panic

A sudden, overwhelming fear that triggers severe physical reactions when there is no real danger or apparent cause.

Schizophrenic

Pertaining to schizophrenia, a severe mental disorder characterized by distortions in thinking, perception, emotions, and behavior.

Preparedness

The predisposition of animals, including humans, to learn certain types of associations more easily than others, which has evolutionary significance.