Due to an Oversight,the Company Bookkeeper Made No Adjusting Entry

question 136

Multiple Choice

Due to an oversight,the company bookkeeper made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31.This oversight would:

• A) Understate net income by $24,000.
• B) Have no effect on net income.
• C) Overstate net income by $24,000.
• D) Overstate liabilities.
• E) Have no effect on the balance sheet.

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Definitions:

Organizational Culture

The common ethos, ideologies, and mores that guide the behavior, emotions, and thoughts of staff members in a business setting.

Three-Component Model

A framework that describes an aspect of analysis or understanding composed of three interrelated elements.

Task Expertise

The specific skills, knowledge, and experience required to effectively perform a particular job or task.

Framing Error

Trying to solve a problem in the context in which it is perceived.