At the End of the Fiscal Year, the Usual Adjusting

question 8

Multiple Choice

At the end of the fiscal 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 understated.
• B) The total of the liabilities at the end of the year was overstated.
• C) Net income for the year was understated.
• D) Owner's equity at the end of the year was understated.

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Definitions:

Phrenology

A now-discredited theory that suggested the shape and size of the cranium could determine character and mental abilities.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious processes and unresolved conflicts from the past.

Unconscious Motives

Drives or desires that influence an individual's behavior or decisions without their conscious awareness.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, including perception, memory, thinking, and problem-solving.