Identify the consequences of not making adjustment entry for accrued expense.Select one:O a. Understatement of capitalO b. Overstatement of expensesOc. Understatement of liabilitiesO d. Overstatement of liabilitiesAn adjusting entry for income received in advanced affectsSelect one:Oa assets and expensesO b. liabilities and incomeO c. liabilities and expensesO d. assets and incomeAn adjusting entry for prepaid expenses affectsSelect one:Oa assets and expensesOb. liabilities and assets

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Identify the consequences of not making adjustment entry for accrued expense. Select one: O a. Understatement of capital O b. Overstatement of expenses Oc Understatement of liabilities O d. Overstatement of liabilities

Identify the consequences of not making adjustment entry for accrued expense. Select one: O a. Understatement of capital O b. Overstatement of expenses Oc Understatement of liabilities O d. Overstatement of liabilities

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 3PA: Identify which type of adjustment is indicated by these transactions. Choose accrued revenue,...

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Identify the consequences of not making adjustment entry for accrued expense.
Select one:
O a. Understatement of capital
O b. Overstatement of expenses
Oc. Understatement of liabilities
O d. Overstatement of liabilities
An adjusting entry for income received in advanced affects
Select one:
Oa assets and expenses
O b. liabilities and income
O c. liabilities and expenses
O d. assets and income
An adjusting entry for prepaid expenses affects
Select one:
Oa assets and expenses
Ob. liabilities and assets

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