A Company Issued Financial Statements for the Year Ended December

question 96

Essay

A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries:
A. Accrued service fees earned of $2,200.
B. Depreciation expense of $8,000.
C. Portion of office supplies (an asset) used $3,100.
D. Accrued salaries of $5,200.
E. Revenues of $7,200, originally recorded as unearned, have been earned by the end of the year.

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Definitions:

Nonrival

A characteristic of a good whereby its consumption by one individual does not reduce the amount available for consumption by others.

Strategic Behavior

Actions taken by firms or individuals with the aim of influencing the market or competitors to achieve a particular outcome or advantage.

Product Differentiation

A strategy that firms use to achieve market power. Accomplished by producing goods that differ from others in the market.

Barriers

Factors or conditions that obstruct entry into a market, restrict competition, or hinder business operations and growth.