30. Maegan Company received an advance payment from a customer amounting to P50,000 on December 29, 2022 for goods that will be delivered on January 2, 2023. The entity credited a liability account in its books to record the said transaction. Which of the following is true if no adjustment is made at the end of 2022? * O A. Income for 2022 will be understated. B. Income for 2022 will be overstated. C. Total assets balance at the end of the year is overstated. D. Balances of accounts are correctly stated.
30. Maegan Company received an advance payment from a customer amounting to P50,000 on December 29, 2022 for goods that will be delivered on January 2, 2023. The entity credited a liability account in its books to record the said transaction. Which of the following is true if no adjustment is made at the end of 2022? * O A. Income for 2022 will be understated. B. Income for 2022 will be overstated. C. Total assets balance at the end of the year is overstated. D. Balances of accounts are correctly stated.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...
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