Failure to Make an Adjusting Entry to Recognize Accrued Salaries

question 47

Multiple Choice

Failure to make an adjusting entry to recognize accrued salaries payable would cause which of the following?

• A)an understatement of expenses and liabilities and an overstatement of shareholders' equity.
• B)an overstatement of expenses and liabilities.
• C)an understatement of expenses,liabilities and shareholders' equity.
• D)an understatement of assets and shareholders' equity.

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Definitions:

Pancreatitis

Inflammation of the pancreas, which can cause severe abdominal pain and is often associated with excessive alcohol consumption or gallstones.

Cholangiopancreatography

A medical imaging technique used to visualize the bile ducts and the pancreatic duct.

Pancreatic Amylase

An enzyme produced by the pancreas that aids in digesting carbohydrates by breaking down starches into sugars.

Enteritis

Inflammation of the small intestine, which can cause a variety of symptoms including abdominal pain and diarrhea.