A Company Forgot to Record Four Adjustments During 2012

question 3

Multiple Choice

A company forgot to record four adjustments during 2012.Which one of the following omissions of adjustments will overstate assets?

• A)Sales made during the last week of the period are not recorded
• B)Interest on monies borrowed has not yet been recorded
• C)Prepaid insurance is not reduced for the portion of the policy that has expired during the period
• D)Income taxes owed but not yet paid are ignored

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Definitions:

Gender Identity

Knowledge that one is female or male.

Toys

Objects designed for play, typically used by children, to provide entertainment and possibly to assist in their developmental processes.

Authoritative Parents

Parents who combine warmth and sensitivity with firmness in their parenting style, often leading to high levels of self-reliance and social competence in their children.

Self-Reliance

The reliance on one's own powers and resources rather than those of others.