The Accountant for Sparks Electric Failed to Make an Adjusting

question 123

Multiple Choice

The accountant for Sparks Electric failed to make an adjusting entry to record $3,000 of telephone expenses for the last two months of the year.Which of the following statements is true?

• A)The total liabilities will be overstated.
• B)The total liabilities will be understated.
• C)The total assets will be overstated.
• D)The total assets will be understated.

Identify and apply calculations for purchasing and recording raw materials, including variances.

Comprehend the procedure for recording fixed manufacturing overhead costs and its variances.

Determine the net operating income and the adjusted Cost of Goods Sold after closing variances.

Understand the process of transferring costs in a standard cost system, including the impact on Work in Process and Finished Goods inventories.

---

Definitions:

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and calming the body after periods of stress or danger.

Central

Referring to the importance or essential nature of something; often used to describe things that are at the core or in the middle of a structure or concept.

Somatic

Relating to or affecting the body, distinct from the mind or psyche.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary body functions, including heart rate, digestion, and respiratory rate.