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Mazyrski [523]
3 years ago
12

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Ch

oice Understate assets by $38,000. Overstate net income by $38,000. Understate net income by $38,000. Have no effect on net income.
Business
1 answer:
Naya [18.7K]3 years ago
4 0

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

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mihalych1998 [28]

Answer:

Option e: Increased opportunities for growth

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6 0
3 years ago
Tom tries to sell his classic car to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's wort
gulaghasi [49]

Answer:

B) Tom's statements provide grounds to set the contract aside.

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What Tom is doing is basically lying about the material facts of the product that they are bargaining and it represents a valid reason for voiding the contract.

5 0
3 years ago
Larkspur, Inc. reports net income of $91,800 in 2022. However, ending inventory was understated $7,800. What is the correct net
dezoksy [38]

Answer:

$99,600

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