At the End of the Financial Year,the Usual Adjusting Entry

question 23

Multiple Choice

At the end of the financial year,the usual adjusting entry for accrued salaries owed to employees was omitted.Which of the following statements is true?

• A) Salary expense for the year was overstated.
• B) The total of the liabilities at the end of the year was overstated.
• C) Net profit for the year was understated.
• D) Shareholders' equity at the end of the year was overstated.

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Definitions:

Self-Actualization

A term used in psychology to describe the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Spiritual Understanding

The recognition and integration of beliefs, practices, and experiences that pertain to the meaning, purpose, and connection with something greater than oneself.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, which outlines eight stages from infancy to adulthood.

Self-Actualization

The process of realizing and fulfilling one's talents and potentialities, considered to be the ultimate goal of personal development.