Failure to Make a Necessary Adjusting Entry for Accrued Interest

question 33

Multiple Choice

Failure to make a necessary adjusting entry for accrued interest on a note payable would result in which of the following?

• A)Liabilities and stockholders' equity would both be understated.
• B)Net income would be overstated and assets would be understated.
• C)Net income would be understated and liabilities would be understated.
• D)Net income and stockholders' equity would be overstated and liabilities would be understateD.The adjusting entry increases interest payable and interest expense, which increases liabilities and decreases both net income and stockholders' equity.Failure to make the entry causes both net income and stockholders' equity to be overstated and liabilities to be understated.

Recognize cranial nerves that contain parasympathetic axons.

Distinguish between alpha and beta adrenergic receptors and their function.

Explain the effect of drugs like atropine on muscarinic receptors.

Identify the classification and specific characteristics of parasympathetic ganglia.

---

Definitions:

Property Dividend

Distribution of dividends to shareholders in the form of physical assets or subsidiary shares instead of cash.

Call Provisions

Call provisions are clauses in bond contracts that allow the issuer to redeem the bond before its maturity date, often at a premium.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Stock Price

The cost of purchasing a share of a company, which fluctuates based on supply and demand in the stock market.