Crafter,Inc

question 47

Multiple Choice

Crafter,Inc.receives subscription payments for annual (one year) subscriptions to its magazine.Payments are recorded as revenue when received.Amounts received but unearned at the end of each of the last three years are shown below: Crafter failed to record the unearned revenues in each of the three years.As a result of the omission,2014 income was

• A) overstated by $146,000.
• B) understated by $146,000.
• C) understated by $26,000.
• D) overstated by $26,000.

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Definitions:

Electronic Brainstorming

A group creativity technique using digital tools to generate ideas, where participants contribute their ideas electronically and anonymously to foster innovation.

Upper Echelon Theory

A theory suggesting that an organization's outcomes are influenced by the personal backgrounds and characteristics of its top executives.

Organizational Characteristics

Traits or attributes that define the nature of an organization, including its size, structure, processes, culture, and goals.

Background Characteristics

Fundamental attributes or experiences of individuals, such as age, education, or cultural background, that contribute to their identity.