An Accountant Failed to Record the Adjusting Entry for Accrued

question 110

Multiple Choice

An accountant failed to record the adjusting entry for accrued revenues.How does this error affect the balance sheet?

• A)The assets at the end of the period will be overstated.
• B)The assets at the end of the period will be understated.
• C)The liabilities at the end of the period will be overstated.
• D)The liabilities at the end of the period will be understated.

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Definitions:

Adult Population

The segment of the population that comprises individuals who are considered adults, typically measured by age, and which can participate in activities such as voting and working.

Labor-force Participation Rate

The percentage of the working-age population that is either employed or actively looking for employment.

Population Participation

Often referred to as the labor force participation rate, it measures the proportion of the working-age population that is employed or actively looking for employment.

Labor Force

The total number of people who are available to work, including those who are employed and those who are unemployed but seeking work.