While Reviewing the Books of Edberg Pest Control Service You

question 62

Multiple Choice

While reviewing the books of Edberg Pest Control Service you discover that no adjusting entry was made for estimated bad debts traceable to sales in 2014 (the company's first year of operation) . Assuming this error is not corrected, which of the following is true at year-end 2014?

• A) Assets are understated, profit is overstated
• B) Liabilities are overstated, profit is understated
• C) Assets are correct, profit is overstated
• D) Assets are overstated, profit is overstated

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Definitions:

Nazis

Members of the National Socialist German Workers' Party, a far-right political party in Germany led by Adolf Hitler from 1920 to 1945, responsible for the Holocaust and World War II atrocities.

Attitude

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Explicit

Information or content that is stated clearly and in detail, leaving no room for confusion or interpretation.

Implicit

Implied or understood though not directly expressed; involving attitudes, beliefs, or reactions that are automatic and unconscious.