Which of the Following Errors Occur When an Accountant Does

question 89

Multiple Choice

Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?

• A) Understatement of Accounts payable in the balance sheet.
• B) Overstatement of operating expense in the income statement.
• C) Understatement of Wages Expense account in the income statement.
• D) Overstatement of total liabilities in the balance sheet.
• E) Understatement of total assets in the balance sheet.

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Definitions:

Pro Forma Net Income

A projected net income over a specific period, calculated under hypothetical assumptions or adjustments.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.

Sales Decrease

A reduction in the amount of goods or services sold by a business within a specific time period.

Equity Financing

The method of raising capital through the sale of shares, offering investors ownership interests in the company.