Accrued interest on a note receivable at the end of the period equals $120.
Omission of this entry would cause which of the following:
a. Net income is understated and retained earnings is understated
b. Net income is overstated and retained earnings is overstated
c. Net income is understated and retained earnings is overstated
d. No effect on the income statement
✓ a. Net income is understated and retained earnings is understated
Employees are owed $3,000 of wages at the end of the year. Omission of the
adjusting entry would include:
a. Net income is overstated and assets are overstated
b. Net income is overstated and liabilities are understated
c. Net income overstated and liabilities are overstated
d. None of the above
✓ b. Net income is overstated and liabilities are understated
A general journal:
a. contains one record for each account
Master01 | October, 2024/2025 | Latest update
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamArsenal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.