Southern Company's Accountant Failed to Accrue as of 12/31/16 Some

question 7

Multiple Choice

Southern Company's accountant failed to accrue as of 12/31/16 some employee fringe benefit program expenses that were incurred in 2016 and that will be paid in 2017. The result of this omission is to:

• A) overstate 2016 net income and understate noncurrent liabilities at 12/31/16.
• B) understate 2016 expenses and understate current liabilities at 12/31/16.
• C) understate 2016 expenses and overstate current liabilities at 12/31/16.
• D)understate 2016 net income and overstate assets at 12/31/16.

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The Enlightenment

A philosophical movement in the 17th and 18th centuries emphasizing reason, individualism, and skepticism towards traditional doctrines.

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