A Company Made No Adjusting Entry for Accrued and Unpaid

question 181

Multiple Choice

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

• A) Understate net income by $28,000.
• B) Overstate net income by $28,000.
• C) Have no effect on net income.
• D) Overstate assets by $28,000.
• E) Understate assets by $28,000.

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Definitions:

Disruptive Selection

Disruptive selection favors individuals at the tails of the distribution of phenotypes present in a population (for example, by acting against individuals with intermediate trait values).

Stalk-Eyed Flies

A group of flies known for having long protrusions from the sides of their heads, bearing the eyes and antennae, a trait believed to be sexually selected.

Stalk Length

The measurement of the stem of a plant, from the base to the beginning of the leaves or flowers.

Narrow Sense Heritability

Narrow sense heritability is the proportion of the total phenotypic variance of a trait attributable to the additive effects of alleles (the additive genetic variance). This is the component of variance that causes offspring to resemble their parents, and it causes populations to evolve predictably in response to selection.