The accounts of a business have been prepared, but no adjustments have been made for accrued expenses
Question:
The accounts of a business have been prepared, but no adjustments have been made for accrued expenses at the end of the year.
What effect will these omissions have on the accounts?
Transcribed Image Text:
Net profit A overstated Current assets Current liabilities no effect understated B understated no effect. overstated rested understated no effect C D understated overstated no effect
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
The correct answer is A overstated The omission of adjustments for accrued expenses at the end of th...View the full answer
Answered By
Chandrasekhar Karri
I have tutored students in accounting at the high school and college levels. I have developed strong teaching methods, which allow me to effectively explain complex accounting concepts to students. Additionally, I am committed to helping students reach their academic goals and providing them with the necessary tools to succeed.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Owing to staff illnesses, the draft final accounts for the year ended 31 March 20X9 of Messrs Stone, Pebble and Brick, trading in partnership as the Bigtime Building Supply Company, have been...
-
Cort Hospital was established as a not- for- profit organization on January 1, 2013, to take over the assets of an existing hospital. The hospital does not use fund accounting. It had the following...
-
On July 1,the first day of their fiscal year, the City of Denver sold bonds with a face value of $10,000,000 at 102 percent par. The bonds bear annual interest at 6 percent; interest is payable...
-
Manhattan Products started and finished job no. B67 during June. The job required $8,000 of direct material and 50 hours of direct labor at $9 per hour. The predetermined overhead rate is $12 per...
-
This exercise requires students to brainstorm about the budgeting process in a restaurant. It requires them to consider budgeting for food items, labor, and sales.
-
Suppose a company can replace the packing material it currently uses with a biodegradable packing material. The company believes this move to biodegradable packing materials will be well received by...
-
Hu Corp. had the following stock issued and outstanding at January 1, 2010. 1. 50,000 shares of no-par common stock. 2. 10,000 shares of $100 par, 3 percent, cumulative preferred stock. (Dividends...
-
Assuming a rate of return of 8%, calculate the monthly savings needed for education assuming that savings will continue until the children's college education is completed. Education Because of the...
-
A motor vehicle cost $18 000. It is expected to have a useful life of seven years and to be sold for $4000 at the end of that time. Required (a) Prepare the Provision for Depreciation of Motor...
-
A business has an accounting year that ends on 30 September. Its insurance premiums are paid in advance on 1 July each year. Premiums have been paid in the past three years as follows. Year I $1800...
-
Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019. If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his...
-
How does the "Trade-Off Theory" influences the decision-making process for companies? Aside from the Trade-Off Theory, what other factors tend to limit the amount of debt a company issues? Generally...
-
1. Define the unique characteristics of perfect competition. Does perfect competition exist in the real world? 2. How do monopolies maximize profits? 3. What are the unique characteristics of...
-
What are the laws and regulations of forensic radiology in Puerto Rico ?
-
How can change be implemented in criminal justice organizations? What are the best ways to prepare for changes in the organization? What are good recommendations to make for improving the efficiency...
-
Critique of Short Stories This week please choose one student short story and write a three-paragraph critique of the story using the guidelines from "How to Give Feedback." Please respond to the...
-
Find the population mean or sample mean as indicated. Sample: 83, 65, 91,87, 84
-
Prove the result that the R 2 associated with a restricted least squares estimator is never larger than that associated with the unrestricted least squares estimator. Conclude that imposing...
-
Insurance agents are intermediaries who help other members of the channel by providing information and handling the selling function. Does it make sense for an insurance agent to specialize and work...
-
Discuss the Place objectives and distribution arrangements that are appropriate for the following products (indicate any special assumptions you have to make to obtain an answer): a. A postal scale...
-
Give an example of a producer that uses two or more different channels of distribution. Briefly discuss what problems this might cause.
-
The following information relates to Blake Auto Supply. Net Sales Revenue Cost of Goods Sold Interest Revenue Operating Expenses $194,000 150,000 12,000 42,500 Calculate the net income of Blake Auto...
-
Joseph's House of Music wants to purchase Transposelt, a system that transposes any song in its database and prints sheet music in the requested key. This system allows singers to obtain sheet music...
-
Suppose a British investor is expected to receive paymentof 10,000 dollars ($) in twelve months from a U.S. bank. The annual interest rate in dollar deposit is 5% and the annual interest rate in...
Study smarter with the SolutionInn App