The Accountant for the Grassroots Company Failed to Make an Adjusting

question 47

Multiple Choice

The accountant for the Grassroots Company failed to make an adjusting entry to record revenue earned but not yet billed to customers.The effect of this error is:

• A)An overstatement of assets and of net income offset by an understatement of owners' equity.
• B)An overstatement of net income and an understatement of assets.
• C)An understatement of assets,net income,and owners' equity.
• D)An overstatement of liabilities offset by an understatement of owners' equity.

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Definitions:

Empathy

Being able to grasp and sympathize with the emotions of another by seeing things from their standpoint.

Legal Obligation

A legal obligation is a duty enforced by law, requiring an individual or entity to act in a specified manner or refrain from certain actions.

Closing

The concluding part of a document or message that summarizes the main points or presents a final thought.

Bad-news Communication

The process of conveying unfortunate or disappointing information in a sensitive and thoughtful manner.