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.

---

Definitions:

MC

MC, or Marginal Costs, refers to the cost associated with producing an additional unit of a good or service, highlighting the incremental expense of production expansion.

AC

Typically refers to Air Conditioning, a system used for cooling and sometimes heating depending on the air properties needed.

Total Costs

The aggregate amount of all costs associated with the production or offering of goods and services, including fixed and variable costs.

Output

The quantity of goods or services produced in a given time period.